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JORDAN WATER DEMAND MANAGEMENT STUDY

December, 2011 Prepared for the Ministry of Water and Irrigation of Jordan (MWI), supported and funded by the French Development Agency (AFD / FDA)


About this report This report is the synthesis of a series of reports on aspects of water demand management, which were prepared for the Jordanian Ministry of Water and Irrigation under a funding scheme of the French Development Agency by consultants from ATEEC and QUASIR between July, 2010 and November 2011. The five reports provide detailed and in‐depth information on the considered topics and are available at the Ministry of Water and Irrigation and the French Development Agency: Diagnostic report – compiles information on the current water situation, its future trends and an assessment of impacts from selected programs in Jordanian water demand management Valuation report – comprises calculations and explanations about the values of water in Jordan’s different sectors of water demand Intermediary report – describes potential scenarios of water demand development until 2025 Scenario Impact Analysis – gives an overview on the major consequences under the developed scenarios. Pre‐conditions for Successful Implementation – comments on the results from the scenario impact analyses in the framework of Jordan's Water Strategy and Action Plan.

www.quasir.de

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Context of the study The Declaration of the Euro‐Mediterranean Ministerial Conference on Water, adopted by Ministers and Heads of Delegations participating in the Euro‐Mediterranean Conference on Water held in Jordan on 22 December 2008 has launched the preparation of a strategy for water in the Mediterranean. One of the two focuses of this strategy is “the balance between the quantity of water used and the quantity of water available, including mitigating and preventing the consequences of droughts and water scarcity”. In this context, the French Development Agency (AFD) and Blue Plan have proposed, within the framework of the new Marseille Centre for Mediterranean Integration, to launch a regional programme on water demand management (WDM), whose main objective is to make the concept of WDM more operational for decision makers by: 1) building on existing projects in agriculture optimisation, 2) bringing economic analysis into national strategies and 3) organising share of experience between high level decision makers. This Programme is complementary to other regional initiatives related to water demand management in Mediterranean that provide training and capacity building. It is based on pilot studies that illustrate how this cost‐effectiveness approach can be a tool for water decision makers. The present “JORDAN WATER DEMAND MANAGEMENT STUDY” is one of these case‐studies on Middle Eastern, North African and Balkan Mediterranean countries. The study was conducted under the auspices and guidance of H.E. Maysoun Zoubi, Secretary General of the Ministry of Water and Irrigation, with direct supervision from Eng. Ali Subah. The Steering Committee chaired by Eng. Ali Subah (MWI consisted of Serge Perrin (AFD), Qais Owais and Nayef Seder (JVA), Khair Hadidi (WAJ), Tobias El‐Fahem (BGR) and Johannes Stork (MWI‐CIM). Information and data were provided by the MWI, WAJ, JVA, the Department of Statistics (DoS), other relevant Ministries and the University of Jordan (UoJ). The scenario development relied on a series of “Story & Simulation (SAS)” workshops hosted by the MWI between October 2010 and April 2011. Additional, extensive support was provided by: 

MWI – Nisreen Haddad and her team from the Water Demand Management Unit at the MWI

WAJ ‐ F. Al‐Azzam, A. Ulimat, J. Hijazi and B.Saleh

JVA ‐ Y. Hassan and F. Ejeilat

AFD – Frédéric Maurel and Lise Breuil

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Table of contents Context of the study ...................................................................................... ii Table of contents .......................................................................................... iii Tables and Figures ........................................................................................ iv List of Abbreviations ...................................................................................... v Key findings ................................................................................................... 1 Introduction ................................................................................................... 4 Chapter 1: Prospective water demands of Jordan ......................................... 6 Chapter 2: Water demand by sectors ..........................................................12 Chapter 3: Water resources .........................................................................26 Chapter 4: Economic considerations ............................................................32 Conclusion ...................................................................................................41 References ...................................................................................................42

Appendix 1: Water Demand ............................................................................................. 43 Appendix 2: Water Supply ................................................................................................ 47 Appendix 3: Water Demand Scenarios ............................................................................. 50 Appendix 4: Water Values ................................................................................................ 59 Appendix 5: Cost Benefit Analyses of WDM measures .................................................... 65 Appendix 6: Strategies, policies and legislations ............................................................. 71

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Tables and Figures Table 1: Current cost estimates for WDM measures in Jordan ............................................... 32 Figure 1: Total Water Demand "Aspiration ................................................................................ 8 Figure 2: Total Water Demand "Trend" ..................................................................................... 9 Figure 3: Water re‐allocation from agriculture to municipal water use, "Trend" scenario (a) ................................................................................................. 11 Figure 4: Water Use 2009 and 2025 ......................................................................................... 12 Figure 5: Balance of Municipal Water Use ............................................................................... 13 Figure 6 Industrial water use 2001 ‐ 2008 ............................................................................... 15 Figure 7: Recorded Irrigation Water Use ................................................................................. 17 Figure 8: Water Allocation in the Jordan Valley ....................................................................... 21 Figure 9: Remaining freshwater for agriculture ....................................................................... 22 Figure 10: Development of treated wastewater from municipal water use ........................... 23 Figure 11: Availability of water for agriculture ........................................................................ 24 Figure 12: Planned Water Supply 2010 – 2025 ........................................................................ 26 Figure 13: Comparison of expected water supply and water demand .................................... 31 Figure 14: Costs of water gains from WDM programs "Green Code", "Awareness" and "Institutions & policies" .............................................................. 33 Figure 15: Costs of water gains from water network rehabilitation (reduction of physical NRW) .................................................................................... 34 Figure 16: Cost and benefits of intended WDM measures in irrigation .................................. 36 Figure 17: Costs and benefits of water transfer from agriculture to municipal water use ..... 37

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List of Abbreviations AWC

Aqaba Water Company

CRW

Crop Water Requirement

DOS

Department of Statistics

HPC

Higher Population Council

IDARA

Project “Instituting Water Demand Management In Jordan”

IRR

Internal rate of return, estimated rate of interest of an investment

JVA

Jordan Valley Authority

Lcd

liters per capita and day

MCM

Million Cubic Meter

MWI

Ministry of Water and Irrigation

NGWA

Northern Governorates Water Administration (legal predecessor of Al‐ Yarmouk Water Company LLC (YWC) until mid‐2010)

NPV

Net present value, value of a timeline of costs, benefits or the difference between both discounted to their present value.

NRW

Non Revenue Water (cf. UFW, water loss)

NWMP

National Water Master Plan (MWI, 2004)

NWS

National Water Strategy ("Water for life", MWI 2009)

OS

Operation Surplus

PMU

Performance Management Unit (MWI)

UFW

Unaccounted‐ for Water (cf. NRW, water loss)

UNSNA

United Nations System of National Accounts

WAJ

Water Authority of Jordan

WDM

Water Demand Management

WDMU

Water Demand Management Unit at the MWI

YWC

Al‐Yarmouk Water Company LLC (cf. NGWA)

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Key findings The Ministry of Water and Irrigation (MWI), supported by the French Development Agency, commissioned a consortium of Jordanian and international experts with a series of consecutive analyses and workshops on water demand management. The objective was to evaluate potential impacts of current water demand management (WDM) options under different assumptions about the development of frame conditions. The conclusive interpretation of the findings allow for the following statements and recommendations: The potential of WDM for decelerating the increase in demand from non‐agricultural sectors in Jordan rises from currently less than 10% to more than 30% in 2025 

Water demand from all sectors except agriculture will presumably increase from currently 346 MCM/year to an amount in the range between 519 MCM/year and 920 MCM/year in 2025. About one third of this range around the current MWI estimate of 679 MCM/year in 2025 is determined by water demand management, two thirds by demographic and economic developments.

The difference between the possible minimal and maximal water demand from non‐ agricultural sectors in Jordan will about double until 2025, i.e. from currently 212 MCM/year to about 401 MCM/year.

Already resolved strategies by the MWI towards the reduction of water demand have the potential to save currently between 13 and 19 MCM/year, whereby around 30% fall upon reductions of physical losses. The potential savings will increase to a level of 107 to 171 MCM/year in 2025 with a potential share of 43 % from loss reduction and the remaining amount from savings in municipal water use.

However, scenarios on the lower end of water demand development imply an average municipal water consumption of about 80 liters per capita and day (lcd) in 2025, i.e. considerably below the threshold of 100 lcd recommended by WHO and USAID.

Jordan's prior‐ranking aspiration of a regionally comparable, nationwide average of 112 lcd, and a related decrease in agricultural water use may entail the need for reviewing options of water recycling.

The growing provision of municipalities with freshwater will rely to a substantial part on groundwater besides the expected water from desalinization. However, locations of groundwater extraction are mostly different from locations where treated wastewater will be available. Compensation of reductions in freshwater supply by recycled water e.g. in agriculture may call for more decentralized approaches to wastewater treatment in the future.

Costs of treated wastewater are competitive in locations with existing or at least expansible sewer systems, but may substantially increase in areas which need the entirely new construction of sewer and conveyance systems first. 1


WDM in agriculture may help to increase the economic efficiency of water use, but has only an ambivalent potential to decrease agricultural water demand. 

Water is an important, but just one of the constraints for Jordanian farming systems and enterprises. A higher economic efficiency of water use leads to higher farm incomes and thus to an increasing potential for funding of additional irrigation operations. Limitations are a function of water availability rather than of water costs and water prices.

Water makes up for only 3 to 4% in average of the variable costs in irrigated agriculture. Increases in water tariffs would reduce water demand, but at the price of negative impact on average farm incomes due to changing decisions on cropping patterns because of risks from markets for products.

A water cap in agriculture, i.e. a regulatory limitation of water allocation, will cause structural effects, such as changes in the composition of farming systems and enterprises, and need accompanying measures that go beyond water demand management and agricultural production.

WDM measures in industry may provide additional, hitherto unexploited potentials. 

Water demand by industry will most probably increase considerably over the next decades, but will still make up for a small fraction of the overall water demand only. However, in particular large industries will need large bulks of water in specific locations, which may interfere with local water demands by other sectors.

The potentials of water use chains, which incorporate industries, municipalities and agriculture in the flows of freshwater and treated wastewater, would be worth to become subject of further assessments.

Decisions on the allocation of water to specific industries in the future should include the request of compliance with regional or international standards in water requirements of up‐to‐date technologies.

The growing competition for water between and within the sectors of water demand leads to a growing need for economic assessments of cross‐sectoral system impacts.

Water demand from all sectors competes predominately for the same water resources. Partial least‐cost and cost‐benefit analyses, which consider costs and benefits of individual elements in the water infrastructure only, are increasingly insufficient for optimal decision making.

Effective WDM must consider options beyond the distribution and saving of water, too. Reduction in uncertainties from other sources and facilitation of access to other resources than water ‐such as capital, land or services ‐ may have secondary, but nevertheless tangible effects on water demand. This holds in particular for agriculture but also for industries.

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The findings recommend the following five focal points for an efficient WDM policy:

Coordinate water demand policies with Jordan's overall goals and sectorial objectives. Gains in the economic efficiency of water use may – and do often ‐stand against development goals and economic efficiencies of other resources and in other sectors. This requires (1) the reduction of overlaps in mandates and the improvement of cooperation between water authorities as well as between ministries and (2) quantified social and economic assessments of policies with regard to the overall goals rather than with regard to water economics alone. The Ministry of Water and Irrigation, Ministry of Municipalities, Ministry of Agriculture, and Ministry of Environment should formulate a joint policy.

Prioritize the stability of a continuous water supply. A low risk in water supply in times of water demand reduces water use by the insurance rate, i.e. water stocked or overused in order to minimize risks from sudden interruption of supply. This holds for over‐irrigation in agriculture as well as for excessive stocking of water from water tankers by resident households. Possible actions in this regard range from recharge of the groundwater aquifers as "natural buffer capacities", other decentralized water storage capacities and the continued reclamation of wastewater up to the respective planning of storage elements in the intended mega‐projects.

Support resident households in their efforts for water savings and water recycling. Potential gains from water demand management result mostly from lower expansion rates of water use per capita. Increasing benefits from water use without proportional increases in water consumption, e.g. by measures from Jordan's "green code", requires investments which may not be shouldered by families or property owners alone. The same holds for installations in urban rainwater harvesting, greywater use and sewerage.

Address the question on water for agriculture from the focus of rural area development. Decisions on water distribution and caps in water for irrigation must take into account (1) the specific functions of land use systems, (2) the economic and operational fundamentals of the different types of farming systems, (3) the desired objectives towards modernization and structural adjustments in the agricultural sector and (4) the livelihood and environmental structures that Jordan wants to preserve. The central technical challenges and opportunities are the control of groundwater over‐abstraction and the continuous expansion of water recycling.

Develop the Water Information System (WIS) into a Water Management Information System (MIS). The Jordanian water administrations and utilities already run extensive systems of data collection and partial analyses. The resulting data and information bases are fragmented and scattered in several sub‐units of the authorities and the MWI, which is an obstacle with regard to quick and reliable information for the Ministry's decision makers. There is an urgent need for consolidation and transformation into a Management Information System with defined workflows and specifications that include economic performance indicators. 3


Introduction Jordan’s economic opportunities, social necessities and aspirations entail a significant growth in water demand over the last decades and will continue to do so in the future. This coincides with a situation where the exploitation of renewable natural water resources already exceeds a sustainable level and the reclamation of non‐conventional water resources requires considerable investments. The resulting increase in water costs and values amplifies the role of economic reflections in decision making on water resource management as well as on the allocation and use of water in the different sectors of water consumption. Jordan’s water management in the past has been dominated by the necessity to supply water. Initial approaches to the management of water demand focused in particular on agriculture in the Jordan Valley through operations on water‐distribution by the Jordan Valley Authority (JVA). Water demand management (WDM) in other sectors than agriculture gained momentum with the establishment of a Water Demand Management Unit (WDMU) at the Ministry of Water and Irrigation (MWI) in 2002. More recent activities of the Unit include the USAID‐funded IDARA project (2007‐2011), which supported the build‐up of institutional capacities, and a close cooperation with Jordan’s private utilities in planning and prognoses of future water requirements. The MWI defined WDM as one of the pillars in its strategy of a “rational water resources management consistent with overall national socio‐economic development objectives”. Tentative milestones of this strategy formulation are Jordan’s National Water Master Plan (NWMP, 2004) and its National Water Strategy 2008‐2022 (“Water for Life”, NWS, 2009), which are subject to continuous updates and enhancements. This indicates that WDM in Jordan intends to go beyond the economic pricing of water and partial criteria of water use efficiency, such as water productivities in different sectors of water consumption. The present study inserts itself into the development of an efficient strategy by contributing analyses and projections about the framework, results and economic consequences of options in Water Demand Management. It builds on information from the broad data bases provided by the MWI, JVA, Water Authority of Jordan (WAJ), Department of Statistics (DOS), Water and Environmental Research and Study Centre (WERSC, University of Jordan) and other Jordanian organizations, current research results on water in Jordan as well as on the results from four workshops and numerous interviews with Jordanian professionals from different fields of expertise. The main objectives of the study were

to bring economic analysis into Jordan water policy and help prioritizing actions according to their cost‐effectiveness

to propose a cost‐effectiveness analysis of these different actions, and to

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enhance ownership of the activities proposed under the Jordan National Water Strategy by ensuring the involvement of key stakeholders and authorities.

Work steps towards the fulfillment of these objectives included: 

A review and analysis of current water politics and the status of water resources

an assessment of future trends in water resources, available water supply, water demand, water pollution and of the impact from selected existing WDM programs in Jordan,

the calculation of economic values of water in the different sectors of water demand,

the workshop‐based development and impact assessment of alternative scenarios on the development of water demand in Jordan and

the identification of pre‐conditions for the successful implementation of each scenario.

This report summarizes and integrates information from the more detailed reports on each of the work steps.

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Chapter 1: Prospective water demands of Jordan Jordan's water requirements started to exceed its natural water resources already in the 1970s (1). The Jordanian government undertook substantial efforts over the last decades to alleviate this deficit through the mobilization of additional water resources, which included surface water, water recycling, desalination and extractions from non‐renewable aquifers. However, the gap between sustainable water supply and water consumption still increases until today. Demographic and economic growth as well as the intended developments in mining and new energies will magnify the Box 1: Insecurities in Water Demand speed of growth in water demand.

predictions until 2025

The recorded total water use in 2009 amounted to 883 MCM/year (2), which may be less than the factual water use due to partially uncontrolled abstraction of groundwater in particular by agricultural enterprises and farming systems. Prognoses of the total water use in 2025 by the MWI vary around 1,500 and 1,600 MCM/year, but are subject to a number of potential variations and assumptions about the development of determining factors (see Box 1). These prognoses already contain assumed effects of current decisions on water demand management by the MWI. The "business‐as‐usual" scenario, i.e. the continuation of water use under the current conditions without interventions of the MWI would end up with about 1.998 MCM/year in 2025. 1

Drivers: Demographic Growth: may vary between 2.1 and 2.6% per year Economic Growth: growth in industrial water demand may vary between 1.3 and 3.9 % per year Decisions: Municipal Water Demand: will increase to 93 lcd according to trend, but socio‐ political target is about 112 lcd Non‐Revenue Water: aspired reduction from 43% today down to 24% in 2025, but 35% in 2025 may be more realistic according to the utilities Urban Water Demand Management: theoretical potentials for savings in domestic water use amount to 21.4% in 2025, but viability is disputable Water for agriculture: a water cap is decided, but the level is still under discussion.

Results from scenario‐based planning , i.e. the comparison of situations with different sets of developments in drivers and decisions, indicate a range between 1,219 MCM and 1,620 MCM in 2025. This holds under the assumption of a cap in water for agriculture at a level of 700 MCM/year. Today, about 90% of the difference between minimum and maximum are a function of the variations in demographic and economic growth, i.e. drivers, which hardly can be influenced by decision making on water demand management. This proportion will shrink to about 70%

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For detailed scenario assumptions and results see appendix 3 6


until 2025. The remaining 30%, which equal about 120 MCM in 2025, depend on water demand management and the development of water use per capita. The considered components of this water demand management include the success in reducing water losses (NRW) and in the implementation of water saving measures in municipal water use, which includes domestic water use as well as water for tourism, commerce, education, health, governmental offices, worship and other urban infrastructure.

1.1 Aspiration – 112 lcd in average nationwide The current domestic water use in Jordan is, with a national average of about 70 lcd, considerably lower than the 100 lcd, which were proposed by the WHO as the lower bound of an optimal water access (3). The factual, nationwide average municipal water demand, which includes besides domestic water also water for commerce, education, health, governmental offices, worship and other urban infrastructure, is estimated to be up to 112 lcd. Variances within the country range from 102 lcd in Karak up to 138 lcd in Amman. Jordan's water strategy (4) formulates the goal to increase the nationwide municipal water supply to a nationwide average of 120 lcd in 2022. However, the current planning by the MWI calculates with the mentioned 112 lcd (without water losses), but aspires to achieve this goal already in the immediate future. This is still below the regional target value of 120 to 150 l/c/d but marks a substantial improvement to the past. Water demand management measures, which are supposed to alleviate the sharply growing water demand under this scenario, are the reduction of water losses (NRW) and the implementation of household water saving measures. Both approaches are Box 2: Non‐Revenue Water still in the stage of planning and early implementation, so there is still NRW, which is called Unaccounted‐for insecurity about the size of their factual Water (UFW) in the National Water Master success in the future. Plan, consists out of: A comparison between scenario (a), where NRW reduction achieves only a level of 35% and water savings in households have nearly no effects, and the scenario (b), where NRW reduction succeeds in achieving the intended level of 24% and water saving measures allow for a reduction of domestic water needs by 21.4%, indicates that  The difference in total water demand between both scenarios would

Administrative losses: this water is part of the water use, but does not yield revenues for the utility. Physical losses: Losses due to leakages and other inefficiencies in conveyance systems. The working assumption of the MWI assumes an equal share of both types of losses in the current 43% NRW in municipal water supply. Assumed reductions in the scenario calculations consider physical losses only. 7


increase from about 1% today to about 11% or 150 MCM/year in 2025 under the assumption of the expected, medium demographic and economic growth,  The difference in 2025 would amount at about 10% or 132 MCM/year if demographic and economic growth is low and at about 12% or 171 MCM/year if demographic and economic growth is high.  The potential range of Jordan's total water demand in 2025 would extend from 1.312 MCM/year in scenario (b) with a low demographic and economic growth up to 1.620 MCM/year in scenario (a) with a high demographic and economic growth. The value2 of the total water demand would increase over the period from 2010 to 2025 by about 78.7 % under scenario (a) and by about 75.8 % under scenario (b). The difference results from the lower proportion of high‐value municipal water use and the respective higher proportion of low‐value water use for irrigation in Figure 1: Total Water Demand "Aspiration scenario (b). 2000 1800 million cube meter / year

However, the economic efficiency depends on the difference between the values and the required costs for water supply. The assumption of a similar water supply implies equal costs in both scenarios. The break‐even point, i.e. the point at which scenario (b) becomes economically more efficient than scenario (a) would be reached if

1600 1400 1200

1287 1229 1190

1410 1397 1280

1559 1520 1371

1000 800 600 400 200 0 2015 current MWI planning

2020

2025

scenario (a)

scenario (b)

NB: figures represent medium situation, ‡ indicates upper and lower bound

 costs for water supply would increase from about 0.49 JD/m³ (weighted average over all sectors under "Aspiration" scenario assumptions) by 0.25 JD/m³ in 2015 and 0.28 JD/m³ in 2025 or, alternatively  the added value from the agricultural sector in scenario (b) would increase from its current average of 0.59 JD/m³ to about 0.77 JD/m³ in 2015, 0.79 JD/m³ in 2020 and 0.80 JD/m³ in 2025. A valuation of the remaining physical losses in both situations with their lowest, possible returns, i.e. water use in agriculture with about 0.59 JD/m³, indicates, that a full saving of these losses would justify additional investments of up to about 40 million JD/year in scenario (a). Remaining physical losses in scenario (b) are considerably lower due to the

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Methods and results of water valuation in different sectors are compiled in appendix 4 8


assumed higher efficiency in NRW reduction and would justify additional investments of 14 million JD/year in 2025.

1.2 Trend – continuation of past developments in water demand A continuation of the trends over the last decades would lead to a nationwide average of 88 lcd of domestic water use in 2025 plus an additional 5 lcd for other municipal water demands. The differences in municipal water demand within the country would vary between 68 lcd in the governorate of Ajloun and about 110 lcd in Amman and Aqaba, whereby the population in all governorates except for these both would receive less than 100 lcd in 2025. т‡ The calculations of the both scenarios (a) and (b) under trend assumptions indicate that

 The difference in 2025 would amount to 107 MCM/year if demographic and economic growth is low and at about 117 MCM/year if demographic and economic growth is high.

Figure 2: Total Water Demand "Trend" 2000 1800 million cube meter / year

 The difference in total water demand between both scenarios would increase from about 6% in 2015 to about 8.7 % or 110 MCM/year in 2025 under the assumption of the expected, medium demographic and economic growth,

1600 1400 1200

1229 11081045

1397 1239 1149

1559 1353 1244

1000 800 600 400 200 0 2015 current MWI planning

2020

2025

scenario (a)

scenario (b)

NB: figures represent medium situation, ‡ indicates upper and lower bound

 The potential range of Jordan's total water demand in 2025 would extend from 1.219 MCM/year in scenario (b) with a low demographic and economic growth up to 1.409 MCM/year in scenario (a) with a high demographic and economic growth (lower and upper bound). The value of the total water demand under "Trend" assumptions would increase over the period from 2010 to 2025 by about 92 % in scenario (a) and by about 89 % in scenario (b). The difference results again from the lower proportion of high‐value municipal water use and the respective higher proportion of low‐value water use for irrigation in scenario (b). The break‐even point, i.e. the point at which scenario (b) becomes economically more efficient than scenario (a) would be reached if

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 costs for water supply would increase from the currently about 0.43 JD/m³ (weighted average over all sectors under "Trend" assumptions) by 0.19 JD/m³ in 2015 and 0.21 JD/m³ in 2025 or, alternatively  the added value from the agricultural sector in scenario (b) would increase from its current average of 0.59 JD/m³ to about 0.68 JD/m³ in 2015, 0.70 JD/m³ in 2020 and 0.72 JD/m³ in 2025. A valuation of the remaining physical losses in both situations with their lowest, possible returns, i.e. water use in agriculture with about 0.59 JD/m³, indicates, that a full saving of these losses would justify additional investments of up to about 25.7 million JD/year in scenario (a). Remaining physical losses in scenario (b) are considerably lower due to the assumed higher efficiency in NRW reduction and would justify additional investments of 11 million JD/year in 2025.

1.3 Major differences between "Aspiration" and "Trend" Increasing the municipal water use of Jordanians from trend extrapolations to a regionally comparable level of 112 lcd would require an additional amount of 180 MCM of water in 2015 and of 167 MCM in 2025. This holds under the assumption of medium developments in demography and economy. Low growth in demography and economy would decrease the additionally required water to 124 MCM in 2015 and 118 MCM in 2025. High growth in both drivers would increase the additionally required water to 224 MCM in 2015 and 211 MCM in 2025. The decreasing difference between 2015 and 2025 is in all cases due to the steady increase of daily water use under "Trend" assumptions over the observed period. Changes in demographic and economic developments have considerably stronger effects on the total water demand under "Aspiration" assumptions than under "Trend" assumptions. Consequences for planning under "Aspiration" assumptions include the necessity for a more diligent consideration of contingency plans for potential disproportionate increases in water requirements as well as the related higher investment costs in water supply and storage infrastructure. Investments in water savings under "Trend" assumptions become already cost‐effective at a lower level of increases in water costs or with lower increases in water use efficiency in agriculture. This effect originates from the higher value of municipal water compared to water for agriculture and the higher proportion of the former in the total water use under "Aspiration" assumptions. It is correct from an economic point of view, but disregards the fact that the value of water for municipal purposes is, amongst others, a function of water costs. This emphasizes the difference between financial budget calculations of the government, which may come to different results, and economic evaluations, which focus on the value added of the whole national economy only.

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1.4 Intersectoral re‐allocation One option for achieving the aspired 112 lcd without additional pressure on Jordan's already stressed water balance is the transfer of freshwater from the agricultural to the municipal sector of water demand. The analysis of effects from such transfers was based on the "Trend" scenario (a), i.e. the situation where NRW are reduced to 35% in 2025 and water savings in households have nearly no effects. The initial municipal water use amounts to 74 MCM/year and increases under the scenario on water re‐allocation continuously to 112 lcd in 2020. The cap on water for agriculture was assumed at 700 MCM in the initial year and required water for covering the increasing municipal water needs was Figure 3: Water re‐allocation from agriculture to municipal taken from this amount in water use, "Trend" scenario (a) the following years. 1600

million cube meter

The additional require‐ 1400 1200 ments of municipal water 1000 demand would cause a 800 reallocation from 600 agriculture of about 70 400 MCM/year already in 2015. 200 This amount more than 0 2010 2015 2020 2025 doubles to 149 MCM/year Nuclear Power 0 0 50 100 until 2020, the year when Touristic 6 10 18 19 municipal water demands Industrial 52 78 91 100 would be adjusted to a Municipal 258 385 527 573 regionally comparative Agriculture 700 635 552 560 level. A low demographic Agriculture Municipal Industrial and economic growth Touristic Nuclear Power would lead to an about 1.2% lower increase, a high developments in these drivers to a 7.4% higher increase in municipal water demand. However, recycling of wastewater from municipal water use and decreasing physical NRW would lessen the impact on water re‐allocation for agriculture already by 5 MCM in 2015. The combined effects would exceed the required water withdrawal for agriculture from around 2020 and lead to a slight recovery of water availability for agriculture until 2025, assuming that treated wastewater amounts to 50% of municipal water use. The higher value of water use in the municipal sector compared to the water value in agriculture leads to an increase of the total value of water use by about 1 %. However, losses in agricultural net returns (operation surplus) would amount to about 36 million JD/year in 2015, 83 million JD/year around 2020 and 79 million JD/year in 2025.

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Chapter 2: Water demand by sectors Figure 4: Water Use 2009 and 2025 1800

1,556

1600 million cube meter/year

Mechanisms that determine water demand in Jordan allow for a distinction between five major sectors: (i) municipal water requirements, (ii) tourism, (iii) industry including new activities in oil shale and uranium mining, (iv) agriculture and (v) ecosystems and nature. Nuclear energy will add a sixth sector with the intended construction of nuclear power plants after 2020.

1,219

1400 1200 1000

6 37

800 600

100 26 117

100 40 122

613

658

700

700

319

303

400 200

100 11 89

883

1,620

537

700

0 The recorded total water use in min MWI max 2009 amounted to 883 MCM/year 2009 2025 (2), which is most probably less than the factual water use due to Agriculture Municipal Industrial partially uncontrolled abstraction Tourism Nuclear Power of groundwater in particular by agricultural enterprises and Source: 2009 by MWI, 2025 by MWI and scenario calculations assumed cap of irrigation water for agriculture: 700 MCM/year farming systems. Recorded water use by agriculture amounted to 537 MCM in 2009, which was equaled about 61% of the recorded total water use. Water for municipal water use was the second largest position with about 34 % and water for industry and tourism made up for the remaining 5%.

The results from the scenario analyses showed that the total water demand in 2025 may vary between 1,219 and 1,620 MCM. Contributions to this growth and its variances differ considerably between the sectors of water demand.

2.1 Municipal water use Municipal water use comprises domestic water use and water for services, such as commerce, health, education, worship, governmental offices and communal green spaces. This sector receives water through the public water network which is managed by the WAJ and Jordan's three public utilities. The total municipal water use reached 313 MCM in 2009 and is expected to increase up to about 481 MCM in 2025 according to Jordan's water strategy (4).

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Figure 5: Balance of Municipal Water Use 700

613

600 million cube meter

However, assumptions on municipal water demand development vary with regard to nearly all underlying determinants, such as demographic growth, water demand and purchasing power per capita, potential impacts from water savings programs and water losses. Extremes in scenario estimations range from a municipal water use of 319 MCM up to 658 MCM in 2025 with a current "most likely" assumption of 613 MCM by the MWI.

515

500

418

400 309

320

300

223

247

165

200 102

117

2009

2010

100 0 Municipal Water Use

2015

2020

2025

Treated Wastewater

Municipal water use is the major Source: MWI, 2010 (2) producer of wastewater. About 33% of water for municipal use returned as treated wastewater to water supply in 2009 (2). Estimates for the future vary between 40% in 2025 according to the current MWI planning (2) and 51% in 2022 according to Jordan's Water Strategy (4). This implies that all additional water for municipal water use must be considered by its impacts on both sides of Jordan's water supply & demand balance. Jordan's major tools for Water Demand Management in this sector are currently the reduction of NRW and the deceleration of increases in daily water use by residents and non‐ residential users through water saving devices and information. Non‐Revenue Water (NRW) was up to 43% in 2009 and is expected to decrease to 25% until 2025 according to Jordan's Water Strategy (4). Improvements are expected in particular with regard to physical losses, which make up for about half of the NRW (cf. Box 2). Jordan's water strategy estimates an increase in total municipal water demand by 159 MCM until 2022. NRW would thus decrease from the 139 MCM in 2009 to about 120 MCM in 2022 according to the strategic goal. However, only savings in physical losses will have an effect on the water balance. Such savings would amount to a maximum of about 86.6 MCM/year under the most optimistic assumption that all anticipated loss reductions would be related to physical losses only. This would compensate for about 54% of the expected increase in municipal water demand, but would still leave the need to cover a gap of about 72.4 MCM/year in municipal demand. The current estimates for decelerating the increase in daily water use by residents and non‐ residential users through water saving devices and information rely on calculations from experimental installations. The assumed potential savings of more than 20% already in 2012 are very optimistic and will require substantial efforts for implementation.

13


However, the minimum water use in the municipal sector of 319 MCM in 2025 relies on the assumption that municipal water use does not grow faster than its trend in the past and that all of these expected water savings can be achieved. The average water supply would then amount to 69 liters per capita and day only, which is in the area of the current water provision level and articulately below regionally comparable standards. The costs of water supply via public networks vary between 0.50 JD/m³ and 0.61 JD/m³. However, the apportionment of these costs on billed water only increases the costs per m³ to a range from 0.8 and 0.9 JD/m³ in Amman, Aqaba, and the northern regions and up to 1.20 JD/m³ in the rest of Jordan. Current average water tariffs for residential Box 3: Definitions customers cover with 0.42 JD/m³ only a part of the full costs. Non‐residents, e.g. Water demand = requested water for commerce and offices, pay 1 JD/m³. (monetary and non‐monetary) beneficial Wastewater discharge adds to both tariffs use with another 0.39 JD/m³ and 0.59 JD/m³, Water requirement = water required for respectively. Costs of water provision will increase in the future due to the additionally required water from new investment projects, such as the Disi water conveyance, water network rehabilitation, Jordan Read Sea Conveyance or its alternative, the Red‐Sea‐ Dead‐Sea Project. As an example, estimated costs of Disi water supply are up to about 0.8 JD/m³. Adding distribution cost and accounting for NRW at the current level would bring the costs of delivering Disi water to customers up to around 1.5 JD/m³.

sustaining living standards (households), operations (industry, tourism, agriculture) and functionality (e.g. nature, agriculture)

Water use = water demand covered by water supply Water consumption = water use minus return flows Water supply = water provision from developed water resources Water allocation = determined amount of water supply for a specific purpose or region

The value of water3 for municipal water users depends on the current costs for water provision and the opportunity costs of a potential use of this water by another client. This implies for the comparison with other sectors that an increase in water costs increases the value of municipal water value, but decreases the net value of water in other sectors. Current water values range from 1.36 JD/m³ in Amman to 1.61 JD/m³ in the northern regions with a nationwide average of 1.49 JD/m³.

3

On methods and results for water valuation see appendix 4 14


2.2 Industrial water use Industrial water use includes both, industries, which receive their water from public water network, and industries with own water wells. Groundwater is with about 90% the main source of water for industry. Industrial water use increased sharply over the last decade up to around 46 MCM in 2008, but annual growth rates differ considerably. About half of this water went to large industries, e.g. mining and chemicals, which may possess the required financial background for own wastewater treatment and water recycling facilities. Major consumers include the petrol refineries in the governorate of Zarqa, potash and phosphate mining in Karak and phosphate mining in Ma'an, which make up for about 75% of the water use in large industries. Figure 6 Industrial water use 2001 ‐ 2008

The estimates on industrial water use incorporate the water requirements of current energy production and scheduled new mining activities for oil shale and uranium, which are supposed to start around 2015. Expected water demands and uses of these "new energies" will rise from to 17 MCM/year in the initial year up to 42 MCM/year in 2025.

50

46

30%

45 35

30

20%

20 21 18 19 19 17 16 12 13 13 11 10 7 8 5 6 6

15%

28

30 25 20 15 10

25%

37 30 25

24

10%

annual growth

40 million cube meter

Jordan’s Water Strategy (4) estimated water requirements by industries to reach about 163 MCM in 2022, but newer prognoses by the MWI see the expected industrial water use at 117 MCM in 2025. Scenario calculations indicate a potential range between 89 and 122 MCM.

5%

5 0%

0

Total industrial water use Large industries Other industries annual growth (%) Source: based on figures from MWI, 2010

Additional industrial water uses arises from the intended construction of nuclear power plants starting around 2020. The factual water demand from these plants relies on still outstanding final decisions about their location and technology. The current working assumption of the MWI is up to 21 MCM/year per nuclear power plant, whereby the planning foresees to meet parts of these water requirements by treated wastewater. Costs and tariffs of water supply for industries with water supply through public networks correspond to the specifications for non‐resident users of municipal water. Costs and tariffs for industries with own wells depend on their own operation costs and their agreement with the water providing authority.

15


Applied and foreseen Water Demand Management tools for the industrial sector focus on wastewater treatment, i.e. the reduction of water consumption instead of water use. All major industries and mines are supposed to be connected or equipped with wastewater treatment plants until 2022, which would make up for 45 to 61 MCM/year of treated wastewater under the assumption of a recycling rate of 50%. However, Jordan's Water Strategy (4) foresees only 27 MCM of treated wastewater for industrial use in 2022, which would leave some leeway for water chain management, i.e. the use of recycled water from industries in agriculture or for environmental purposes. Recycling of water from Nuclear Power Plants for use in other sectors is currently not regarded as an option. Water values vary highly between industries and are naturally lowest in sectors with high water demands. Industrial sectors with the lowest profits per m³ in the inflation‐adjusted 6‐ year average were mining and quarrying, chemicals and food products, which are simultaneously the largest industrial water consumers. Their weighted operation surplus, i.e. the approximate pre‐tax profit income4, amounted from 38 up to 46 JD/m³. Sectors on the upper end of profits per m³ include oil, gas, coke and petroleum products with 680 up to more than 5.574 JD/m³, but consume less than 2% of the total water for industries. The total operation surplus of Jordan’s industries, amounted to about 2.48 billion JD in 2008, which corresponded to an average operation surplus of about 55 JD/m³. This was well below the 6‐year average of about 78 JD/m³.

2.3 Water use by tourism Water use by tourism includes water for hotels, restaurants and other tourist services and facilities. Water to this sector is supplied by WAJ and the utilities via the domestic water network and is considered administratively as part of the municipal water supply. Touristic water use reached around 10 MCM in 2007 and is expected to reach 29 MCM by year 2025 (NWS, 2009). Scenario calculations set the range for 2025 between 11 and 40 MCM. The majority of water use in tourism arises in the three touristic centers Amman, Aqaba and the hotel resorts along the eastern shore of the Dead Sea. Applied and foreseen Water Demand Management tools comprise amongst others greywater and water recycling. International studies show that water saving techniques allow for a decrease of water use in hotels by about 20% without affecting standards or clients' satisfaction. However, these studies were conducted in countries with moderate climates and experiences in Jordan are still outstanding.

4

The operation surplus represents the difference between the gross value added including producer subsidies minus (1) the consumption of fixed capital, (2) compensation for employees and (3) indirect taxes (definition according to the United Nations System of National Accounts, UNSNA) 16


A complete separation of water demands by tourism from transport and commercial services for the local population is difficult. Hotels and restaurants consumed about 7.8 MCM in 2007, which corresponded to an operation surplus of about 38 JD/m³. Water values in other sectors where distinctly higher and ranged from 66 JD/m3 in food and beverages sales up to 303 JD/m3 for the repair of personnel and household equipment (cf. appendix 4).

2.4 Agricultural water use

Figures on agricultural water use do not include water use by rainfed agriculture, which makes up for slightly more than half of Jordan's 260 thousand hectares of cultivated areas. About 70% of Jordan's agricultural holdings have access to irrigation for at least parts of their cultivated areas (5).

million cube meter

Agricultural water use comprises mainly irrigation , where recorded water use was up to more than 584 MCM in 2009, and to a far lesser extent intensive livestock husbandry, e.g. poultry farms, with a water use of less than 10 MCM in the same year. Figure 7: Recorded Irrigation Water Use 900 800 700 600 500 400 300 200 100 0

The sources for irrigation water and challenges in water supply distinguish two major regions of agricultural water year use. Irrigated agriculture in the Jordan Valley relies predominantly on surface Highlands Jordan Valley Source: based on figures from MWI, 2010 water, which includes water from the tributaries to the Jordan River, water flows from the side Wadis and treated wastewater from the urban areas in the highlands. Irrigated agriculture in the highlands east and south of the Jordan Valley relies predominantly on groundwater and is thus a direct competitor for the current major water source of municipal and industrial water supply. The assessment of factual agricultural water use varies by about 44% between the recorded water abstractions by Jordan's water authorities and the physiological crop water requirements (CWR) of the recorded cultivation (7). Recorded water abstraction for agriculture amounted to 537 MCM in 2009 according to the MWI, while estimates based on CRWs amounted up to about 960 MCM for the same year. Assumed reasons for the difference are a combination of unrecorded groundwater abstractions and depressions or even failure of yields. Both figures indicate that irrigated agriculture is the largest water user in Jordan. In 2007, 64% of the annual total water use was for irrigated agriculture (NWS, 2009). Irrigated agriculture used 50% of the pumped groundwater for all purposes which summed up to 216 MCM for that year and equaled about 79% of the total renewable groundwater resources.

17


Agricultural production contributes only about 3.6% to Jordan's GDP and employs 2% of its labor force, but 30% of Jordan's population lives in rural areas. Arguments for water supply to agriculture do thus not only rely on production values but also on functions of agriculture in the preservation and development of rural systems and areas. The Jordanian government decided to approach future water allocation to agriculture by a combined strategy of control of hitherto unrecorded groundwater abstractions and a simultaneous cap of water for this sector. The intended level of the cap is still under discussion. Current ideas range between 700 and 1,000 MCM/year, which would put the water allocation somewhere between half and the upper limit of the estimated physiological water demand for the current cropping pattern on Jordan's cultivated areas. Most of the increased control of groundwater wells and the water cap will affect agriculture in the highlands, which use currently about 70% of the recorded total irrigation water. Applied and foreseen Water Demand Management tools in agriculture focus in particular on increases in irrigation efficiency, water tariffing and water caps. Increases in water efficiency include technical as well as managerial improvements, e.g. the promotion of water users associations and participatory irrigation management (PIM). The evaluation of first experiences with PIM in the Jordan Valley yielded promising results with regard to cost reduction in water supply and increases in economic water use efficiency. However, all measures which focus on irrigation efficiency and water productivity promoted the extension of the now even more profitable agricultural activities and increased rather than decreased water demands. The Jordan Valley Authority uses blocked tariffs with increasing prices for higher water quotas already since the 1990s. The experience shows that this also did not lead to decreases in water demand, which is a function of land tenureship, rental agreements, resource endowment of different types of farming systems and the situation of alternative incomes for farming families. Water quotas and charges for over‐abstraction of wells in the highlands, as stipulated in the Underground Water Control By‐Law no. 85 (2002) and its amendments (2003, 2004, 2007), did not solve the problem of unsustainable groundwater withdrawal either. Jordan's water strategy foresees a cap for water use in agriculture and an enforced control of groundwater abstraction from currently private wells and boreholes. The consequences and secondary effects of these measures will highly depend on the conditions of these regulatory measures. Costs of water for irrigation depend on the source of water and vary widely. The Jordan Valley Authority (JVA) applies a block tariff structure and charges about 0,02 JD/m³ for water from the pressurized irrigation water system, which covers approximately 40% percent of the costs for operation and maintenance (O&M) and 10% of the full costs. However, irrigation in the Jordan Valley also uses treated and blended wastewater, which would be of less use otherwise without additional and expensive steps for purification.

18


Costs of water for irrigation in the highlands depend in the first place on the investments and O&M costs for the private well operators. Tariffs by the water authorities are up to 0.025 JD/m³ for non‐licensed wells and increase stepwise with the amount of water extraction. Owners of licensed wells pay this tariff only for over‐abstraction, i.e. above 150.000 m³/year. Proportional variations in the value of water for agricultural production are on a similar scale as for water in industry, but considerable lower in absolute terms. The operation surplus in crop production ranged from 0.011 JD/m³ for some millet varieties up to nearly 4 JD/m³ for cucumbers in 2008. The average, weighted operation surplus per group of crops amounted to 0.288 JD/m³ for field crops, 0.789 JD/m³ for vegetables and 0.149 JD/m³ for fruit trees under the cropping pattern in 2008. The overall average operation surplus in crop production amounted to 0.563 JD/m³ in 2008. However, these values are subject to changes between the years due to the variations in prices for agricultural products as well as in cropping patterns. Livestock husbandry consumes less than 2% of the water for agricultural purposes but yields much higher returns per m³. However, accessible data allowed for the calculation of the Gross Value Added only, which ranged in 2009 from about 9 JD/m³ for laying hens up to 56 JD/m³ in hatcheries. The average Gross Value Added in Livestock production amounted to 18.06 JD/m³ in the year of reference.

2.4.1 Starting points for WDM in the agricultural sector Agriculture is the only sector of water demand where an intra‐sectoral reallocation of water is likely. But even in this sector reallocation of water would be restricted to exchanges within a given location. A mere transfer of water to more water‐efficient crops would benefit already specialized rich farmers, but discriminates against poorer farmers, who depend on diversification in order to minimize risk and do not possess the required capacities, e.g. capital, for the required adjustments of production and marketing structures. Expectable consequences from an unidirectional focus on economic water use efficiency alone would include in the first place: 

a structural change in Jordanian farming systems towards larger enterprises and a decline in smaller family farms and traditional farming and

an increase in agricultural water demand due to the improved economics of irrigation water use in combination with farming enterprises, which possess the required endowment in land and capital for enhancing their farming business.

Suitable policies and instruments to curtail agricultural water demand without undesired consequences will depend on the identification of the specific functions of land use systems, the economic and operational fundamentals of the different types of farming systems, the desired objectives towards modernization and structural adjustments in the agricultural sector and the livelihood and environmental structures that Jordan wants to preserve.

19


The central technical challenge is the improvement of farmers' access to irrigation techniques and training under the simultaneous consideration of 

an equitable provision of services to all farmers, which may require additional adjustments in the economic frame conditions , e.g. access to capital, for farms with low resource endowment and the respective harmonization in the planning of local rural development,

the control of groundwater abstraction, which allows for its reduction to a sustainable level, and

the further expansion of water recycling, i.e. treated wastewater use, which provides the major alternative water resource.

Data for the required farming systems analyses, which have to include the socio‐economic situation of concerned farming families, exist in part for the Jordan Valley, even if these data from 2003 are somewhat outdated. Respective information on farming systems in the highlands may be hidden in the extensive data bases of Jordan's agricultural surveys, but would require a comprehensive re‐structuring and analysis of these data. However, some known bottlenecks for farmers offer first suggestions for starting points of WDM measures, which may have the double potential of improving the situation of farmers without simultaneous incentives for more water use.

 Timing of water supply: Gaps between the formation of water quantities and the need for water in agriculture require storage facilities and an outflow management, which correspond to water requirements in agriculture. A better balance of the management of water storage systems with water needs in agriculture would improve water use efficiency in agriculture even without changes in the current cropping patterns. Groundwater for irrigation is basically available “on demand”. Water from treatment facilities and other sources provide a more or less constant flow, which requires storage until relevant irrigation periods. The implementation of storage facilities leads not only to additional demands to capital for the investments but also requires additional space. The latter may become a substantial factor in particular when those storage facilities are placed on land of farming systems with comparatively low land endowment and/or high potential returns per dunum. Central storage facilities for larger amounts of water are mostly available in the Jordan Valley and adjacent side valley (wadis). Timing of water distribution via the conveyance system connected to King Abdullah Canal (KAC) has to respond to a multitude of combinations of farmers’ individual objectives, amongst which maximum profits and minimal risk may be the most important. The comparison between JVA’s intra‐annual water distribution, the optimal water distribution for attaining maximum profits and the respective distribution for minimizing risk indicates the difficulty in managing centrally stored water resources (cf. fig. 8).

20


Figure 8: Water Allocation in the Jordan Valley 16 14 12 10 8 6 4 2 Sep

Aug

July

June

May

Apr

Mar

Feb

Jan

Dec

Nov

0 Oct

million cube meter

Reliability of water supply: Experience from participatory irrigation management (PIM) in the Jordan Valley shows that an increase in the reliability of water supply reduces (i) inefficient water consumption through over‐ irrigation and (ii) the risk of water efficient, but water‐stress sensitive cropping patterns. The positive outcome of the PIM pilot projects prompted the JVA already to plan for an extension of this approach to all irrigation basins of the Jordan Valley.

Local control of water resources Actual Optimal by water users associations in the highlands is – at least in some Source: Salman et al., 2011 (8) areas – already a traditional way to handle communal water resources. The embedding of hitherto private boreholes in local PIM approaches may yield comparative positive effects.  Other uncertainties (“risks”) in agricultural production: Significant variations in market prices and in the comparative advantage of individual crops, i.e. variations in the relation between market prices of specific crops, lead to cropping systems which are often sub‐ optimal with regard to the utilization of water resources. However, they are optimal with regard to the achievement of farmers’ goals, i.e. their chosen combination between maximal profitability and minimal risk. An important element is dynamics, i.e. farmers’ choices may not be optimal with regard to a specific year, but focus on the sustainability of farm operations over longer time spans. This holds in particular for investment decisions in perennial crops, e.g. fruit trees and olives, and farm infrastructure, e.g. irrigation systems, farm machinery and green houses. Reduction of those risks, e.g. by improving farmers' position in marketing, would allow for an increase in agricultural incomes with comparatively low distortions in the competitiveness of existing farming systems.  Different constraints in different farming systems: Water is a scarce production factor for most Jordanian farming enterprises, but still just one of their constraints and probably not always the most decisive one. Access to capital, prices of production factors, market

21


access and competition for resources of farming families by alternative employments in off‐farm sectors often play an at least equally important role. The consequences of changes in water availability and quality depend much more on the interrelationships between these constraints in individual farming systems (i.e. systems that determine farmers’ overall economic success and livelihood) than on agricultural systems (i.e. cropping systems and the combination of agricultural uses of natural resources). The type, amount and complexity of required support for transforming existing farming systems into sustainable enterprises under changed conditions in water supply depends on their resource endowment and socio‐economic situation. The formulation of effective policies for specific farming systems will require further investigations .

2.4.2 Water quantities for agriculture

million cube meter / year

Agriculture has, after nature, the lowest priority in the allocation of water by Jordan's water policies. Potentially available water for agriculture consists out of the water that remains after coverage of all water needs of the municipal, Figure 9: Remaining freshwater for agriculture industrial, touristic and, 700 after 2020, nuclear energy 584 sectors. Additional water for 544 600 agriculture comes from the treatment of wastewater, 437 465 where only a very limited 500 392 competition exists from certain industries and 312 400 303 probably parts of water 340 323 demands for cooling 300 purposes in the intended nuclear power plants. Current discussions on the magnitude of the designated cap for water use in agriculture (4) act on assumptions between 700 and 1,000 MCM/year, but see an implementation of limitations exclusively in the highlands. Agriculture in the Jordan Valley will rely to a

200

100

0 2015 MWI

2020

Aspiration Scenarios avg.

2025 Trend Scenarios avg.

NB: scenario figures represent average situation, ‡ indicates upper and lower bound, MWI: working assumptions 2011

22


growing extend on the provision with treated wastewater, which increasingly replaces freshwater from the tributaries to the Jordan River. This freshwater will be diverted to an increasing degree to the urban areas in the highland for municipal water supply. The current calculations by the MWI assume that remaining amounts of freshwater, i.e. annually available freshwater resources5 minus demands from all other sectors, will amount to between 312 and 340 MCM/year in the period from 2015 to 2025. The estimations from the scenario analyses indicate that this amount may vary between far less than 303 MCM in 2015 up to more than 600 MCM in 2025, depending on (i) the factual developments in demographic and economic growth and (ii) the effects from loss reductions and water savings.

wastewater depends predominantly on developments in municipal water use and treatment capacities. Current estimations of the MWI act on the assumptions of Jordan's Water Strategy (4) and predict an increase from 102 MCM in 2009 to 247 MCM in 2025. Scenario estimations on the basis of a reclamation rate of 50% from water for municipal use indicate, that the scheduled

Figure 10: Development of treated wastewater from municipal water use 700 600 million cube meter / year

The development of available treated

500 400 300 200

165

247 234

223 214

224

169

146

149

100 0 2015 MWI

2020

Aspiration Scenarios avg.

2025 Trend Scenarios avg.

wastewater amounts may NB: scenario figures represent average situation under the assumption of only be reached if (i) a 50% reclamation rate, ‡ indicates upper and lower bound, MWI: municipal water use working assumptions 2011 increases stronger than according to the trends in the past and/or (ii) factual developments in demographic and economic growth surpass the predicted rates and/or (iii) reductions of physical NRW and water savings fall behind the expectations. The resulting total water availability for agriculture from remaining amounts of freshwater and treated wastewater will extend to 477 MCM in 2015 and increase to 570 MCM in 2025 according to the current planning figures of the MWI6. The scenario calculations indicate that the targeted 700 MCM/year for agriculture can only be achieved earliest in 2020, but

5 6

For a description of existing and expected water resources see chapter 3 cf. chapter 3, Figure 12 23


even then only under the assumption of (i) an increase in municipal water use according to the trends, i.e. a considerably lower water use per capita than 100 lcd and (ii) factual developments in demographic and economic growth that surpass the predicted rates. Figure 11: Availability of water for agriculture 1000 900 million cube meter / year

800

606 527

700

563

400

477 165

223

303

169

570

214 247 584

544

465 312

753

234

149 224

146

300 200

690

614

600 500

671

340

437

392

323

100 0 MWI

Aspiration Trend 2015 Freshwater

MWI

Aspiration Trend 2020

Treated Wastewater

MWI

Aspiration Trend 2025

Water Cap 700 MCM

NB: scenario figures represent average situation under the assumption of a 50% wastewater reclamation rate of water for municipal uses, ‡ indicates upper and lower bound under different assumptions on developments in drivers, NRW reductions and water savings, MWI: working assumptions 2011

These calculations of water availability for agriculture represent the results from the nationwide balance between water supply and water use, but do not consider the location of water amounts. The majority of wastewater is produced by Jordan’s urban areas and flows downhill, i.e. to the Jordan Valley. Especially governorates in the highlands like Mafraq and Ma’an will not benefit from the overall increase in treated wastewater, even under the assumption of an equal efficiency of local wastewater treatment. Governorates in the Jordan Valley with similar situations, such as e.g. Balqa, receive already nowadays substantial amounts of treated wastewater via the water infrastructure around the central treatment plant at As Samra. Improvements in the efficiency of water recycling provide only a marginal potential for alleviating the gap between agricultural water demand and water availability in the highlands under the given conveyance infrastructure. The argument against investments in an infrastructure for the transfer of treated wastewater from other governorates is that only the governorate of Amman will produce more treated wastewater than probably required by its local agriculture. This water is already used nowadays for agriculture in the Jordan

24


Valley, which has the advantages of an already existing conveyance system and lower conveyance costs due to the difference in altitude.

2.5 Water demand by Nature The assessment of water requirements by nature focuses on the major natural reserves and unique ecosystems in Jordan, whereby the Dead Sea takes a special position due to its cross‐ border location. The deficit between the historical inflow and the current inflow to the Dead Sea amounts to about 1.20 billion MCM/year, which led to a decline of its sea level by about 1 m per year over the last decades. Jordan's part in this deficit consists mainly out of the diversion of about 70 MCM/year from the Yarmouk River to King Abdulla Canal for domestic supply to west Amman and for agricultural use in the Jordan Valley. One proposed solutions to restore the Dead Sea level is the Red Sea Dead Sea Canal project, which is expected to bring about 850 million cubic meter of brine to the sea. Other major natural areas endangered by water stress comprise the Al Azraq Oasis, Wadi Mujib and Wadi Wala. Estimates of the total water demand for these areas amount to 55 MCM /year, but significant return flows of this water can be and are used by other sectors, such as in the case of Wadi Mujib and Wadi Wala. This water demand is assumed to be the minimum amount required to save these ecosystems and regarded as a long‐term constant. Al Azraq oasis is a natural reserve in the eastern desert of Jordan. The oasis is one of the most unique ecosystems in the region and an important home for migratory birds. The WAJ put a stop to well digging and planned to pump up to 1.5 MCM /year from artesian wells to the wetland reserve in order to preserve the remainders of the oasis. Water amounts pumped in 2008 where up to slightly more than 700 thousand m³. A full restoration of the oasis would require limiting of the abstraction to the safe yield of about 25 MCM/year. Wadi Mujib is a gorge which enters the Dead Sea at 410 meters below sea level and a regionally important sanctuary for biodiversity of flora and fauna. The current base flow is up to 38 MCM/year and considered as adequate supply of the natural demand. Wadi Wala, which is known in its lower reaches as Wadi Heidan, runs from its headwaters south of Amman to its confluence with Wadi Mujib about 3 km from the Dead Sea. Wadi Wala has a fairly stable base flow which covers its estimated water demand from nature of about 6.6 MCM/year.

25


Chapter 3: Water resources The MWI acts on the assumption of an available water supply of 892 MCM in 2010. Increases in the annual supply until 2020 rely predominantly on the extended exploitation of fossil groundwater and the development of wastewater treatment capacities. The major expected source for additional water from 2020 onwards is desalinated water from the alternative mega‐projects "Red Sea Dead Sea Water Conveyance (RSDSWC)" or "Jordan Red Sea Project" (JRSP). Their contribution is supposed to increase water supply up to 1429 MCM/year around 2025 (cf. fig. 12). Sustainable water supply will be up to 816 MCM in 2010. Water requirements above the sustainable water supply are met by over abstracting renewable groundwater aquifers. This over abstraction was estimated with about 55% of the safe yield according to MWI's 2009 water budget. The Ministry assumes an over‐abstraction of about 76 MCM for 2010 and plans to phase out over‐abstraction until 2025.

Figure 12: Planned Water Supply 2010 – 2025 1600 1429

million cube meter/year

1400

1260

1200 1006 1000

892

800 600 400 200 0

2010

2015

2020

2025

0

0

210

370

Treated Wastewater

117

165

223

247

Peace Treaty

50

50

50

50

Desalinization

10

25

25

25

Surface Water

236

244

255

266

Fossil Groundwater

74

142

142

142

Red Sea Desalinization

Renewable Groundwater Groundwater overabstraction Total

329

329

329

329

76.13

51.13

26.13

0

892

1006

1260

1429

Source: MWI, 2011

26


Conventional fresh water resources in Jordan consist in their vast majority out of groundwater and surface water, whereby groundwater is the main source for municipal water supply, industry and irrigation in the highlands. The estimated safe yield of groundwater amounts to 329 MCM/year from the twelve basins with renewable groundwater. This includes the estimated 54 MCM/year of return flows from already pumped water back to the aquifers. Basins with non‐renewable groundwater contribute currently about 74 MCM per year, whereby estimates on potential safe yields from these sources vary from 107 up to 143 MCM/year. Developed surface water resources from the fifteen surface water basins were up to 289 MCM in 2009 and shall reach 266 MCM/year until 2025 according to the current planning of the MWI. This falls short of the scheduled 365 MCM/year in 2022 as stated in Jordan's Water Strategy (2009), but the inflows of surface water vary in any case significantly from year to year. The estimated long term average sustainable extraction rate amounts to about 692 MCM/year, but this includes both, base flows and flood flows. Israel is obliged to deliver an additional 50 MCM/year according to the peace treaty from 1994.

3.1 Water resource development Overall expectations to additional contributions from the further exploitation of conventional water resources until 2025 are up to about 121 MCM/year. This includes an increase in water conveyance from the Disi aquifer from currently about 61 to 122 MCM/year, 25 MCM/year from new dams and another 30 MCM/year from an improved performance of the joint Jordanian‐Syrian Al‐Wehda dam. Expected contributions from urban rainwater harvesting amount to 5 MCM/year in 2025, whereby its full potential was estimated to be about 100 MCM/year (CEC, 2010). Most water from non‐conventional water resources will come from the treatment of wastewater at least until 2020. Treated wastewater added 102 MCM to Jordan's water balance in 2009 and estimations for 2010 are up to 117 MCM. Jordan's Water Strategy (4) and the planning of the MWI act on the assumption that available water from wastewater treatment will more than double until 2025 and reach 247 MCM in that year. Water from local desalination adds currently about 10 MCM/year and is expected to reach 25 MCM/year from 2015 onwards. Planning of large‐scale desalinization is much more ambitious with an expected contribution of about 210 MCM/year in 2020 and 370 MCM/year in 2025 from desalinization of Red Sea waters. However, the mentioned alternative mega‐projects RSDSWC or JRSP are in their planning phase and at least some financial aspects for their realization are still pending. Increases in the efficiency of water conveyance and water use do not add to the available water resources, but allow for a more targeted water allocation. Expected gains from improved water use efficiency amount to 74.5 MCM/year and from improved water supply efficiency to between 62 and 83 MCM/year 2025.

27


This listing of the estimated water resources in the future relies on assumptions about "most likely" developments, but is already today subject to high annual and inter‐annual variations. Reasons are the dependency of most natural water resources and their safe yields on the magnitude and distribution of precipitations. Relatively safe estimations are only possible for water from fossil, non‐renewable aquifers and seawater desalination, i.e. water from the aforementioned mega‐projects. The development of new water resources will require additional infrastructure and technologies that exceed the costs of investments, operation and maintenance of the existing water exploitation. The current full costs for water supply range from about 0.13 JD/m³ for treated wastewater from existing treatment plants and sewer systems, 0.15 JD/m³ for groundwater extraction in highland agriculture and 0.29 JD/m³ for surface water for irrigation in the Jordan Valley up to about 0.51 JD/m³ for the supply of municipal water. The estimate of the current average costs per m³ of water supply is up to about 0.35 JD. Additional water for the future from increases in wastewater treatment may have to calculate with considerably higher costs in particular in areas, which require the complete new construction of infrastructure for wastewater collection and conveyance of effluents from treatment plants. Cost estimates for the conveyance of non‐renewable groundwater from the Disi aquifer to Amman are up to slightly more than 0.80 JD/m³ and water from large‐scale desalinization of Red Sea water may even be way above 1.50 JD/m³. This indicates that water for the future will come in each case at higher costs. Current estimates act on the assumption of water costs, which may more than double in the future. However, the economic costs for the development of new water resources must be clearly distinguished from reflections on funding and impacts on budgets. Questions on the distribution of costs will have to consider, amongst others, elements like charges for wastewater disposal by clients as well as potential grants from donors. Hazards to water quality in Jordan comprise unsafe wastewater management, uncontrolled disposal of industrial waste, leaching from unsanitary solid waste landfills, seepage from agrochemicals and over‐abstraction from water resources. Existing action plans for the preservation and improvement of water quality focus on (1) groundwater abstraction, (2) the extension of access of households to sewer systems, (3) improvements in wastewater treatment technologies and (4) the enforcement of wastewater treatment plants for all industries (NWS, 2009). Concerns about potential damages from agrochemicals to water quality did not make it on the agenda yet. However, they may be expectable in the future if efforts towards increasing water use efficiency in agriculture will lead to a more extensive use of fertilizers and pesticides in the watersheds of the highlands.

28


3.2 Strategies, Policies and Legislations The Jordanian government faced the growing water question on a national scale by institutionalizing an adequate water administration. Milestones were the mandate of the Water Authority of Jordan in 1988 and the creation of the Ministry of Water and Irrigation in 1992. First regulations followed for wastewater (regulation no. 54/1994) and drinking water (regulation no. 67/1994) in 1994. The Jordan Valley Development Law no. 19 from 1988 defined rules for the development of water resources in the Valley for water use in all sectors. Law no. 30 from 2001 amended this law under the same title. Currently, there are around 19 ruling strategies, policy and legislation documents on the water sector. The National Water Strategy (2009) and the National Water Master Plan (2004) constitute the basis for the current planning, whereby the latter is subject to constant amendments and adaptations by a standing working group at the MWI. The list of strategies, policy and legislation documents is attached in appendix 6.

3.3 Climate Change Estimations about effects from Climate Change indicate a slight increase of precipitations until 2030, but a deterioration of climatic conditions after 2030. According to the report of the International Panel on Climate Change (IPCC 2007), projected annual average ranges of precipitation may decrease in Jordan and its surrounding countries by 10% to 20 % in the long run. Climate Change Projections from regional climate models on the lower Jordan River area, which covers all of Jordan north from the Dead Sea, indicate amongst others:    

a slight increase of total precipitations until 2035, but a decrease by at least 15% between 2031 and 2060, a slight increase in consecutive dry day length, a reduction in the number of heavy precipitation days, but an increase in the number of very heavy precipitation days and a temperature increase of between 1.5 and 2.5° C

source: Karlsruhe Institute of Technology, 2010

Further effects are the increase in the occurrence of extreme weather events and an intra‐ annual shift of dry seasons. The impact of such changes on the replenishment of dams and aquifers as well as their dynamics over the coming years is still subject of ongoing research. However, it highlights the probability of potential downward corrections of safe yields from ground‐ and surface water in the future and emphasizes the role of the intended mega‐projects in the mitigation of uncertainties.

29


Impacts from Climate Change that go beyond changes in safe yields from surface and groundwater resources will in particular affect rainfed agriculture and nature due to the expected intra‐annual shift of precipitations. Regions of major concerns are the drier rainfed agricultural areas in the governorates of Mafraq, Al‐Zarqa, Ma'an, Aqaba and parts of Madaba. Changing groundwater availability for irrigation due to Climate Change will affect in particular agriculture in the Wadi Arabah region with its mix of rainfed and irrigated agriculture. This highlights the potential role of surplus irrigation as part of the solution to water constraints in agriculture (cf. Comprehensive Assessment of Water Management in Agriculture, IWMI, 2007).

30


3.4 Comparison of supply and demand The comparison between the expectations of the MWI on the development of total water supply and demand from all sectors except agriculture yields a surplus of currently 495 MCM/year, which would increase to 570 MCM/year in 2025. This surplus includes a decreasing over‐abstraction of groundwater from currently about 76 MCM/year to zero in 2025 and the expected contributions from the Dead Sea mega‐projects to the water supply. Water use by agriculture, which exceeds this surplus, would have to rely on an extension of the already considered over‐abstraction of groundwater. A comparison of the expected water demand by the MWI with the range of results from calculations of the WDM scenarios shows that the estimations by the Ministry tend to approach the upper bound of scenario‐based estimations until 2025 (cf. fig. 13). Reasons are (i) the current estimation approach of the MWI, which is based on the "Aspiration" assumptions, i.e. a nationwide average supply of 112 lcd starting in the immediate future and (ii) the very cautious consideration of potential savings in municipal water use in the calculations of the MWI. Figure 13: Comparison of expected water supply and water demand 1600 1400

510

1200 million cube meter

range of potential water demand development without Agriculture Business as usual (max)

1000 upper bound from scenarios

800

365

401

600 400 200 0 2010

lower bound from scenarios

212 519

current demand estimate by MWI

315 2015

2020

2025

Source: MWI planning assumptions 2011, scenario calculations by QUASIR

31


Chapter 4: Economic considerations Preliminary estimations by the MWI on required investments for the implementation of WDM measures towards the achievements of the goals of Jordan's Water Strategy 2008 – 2022 are up to more than 1.25 billion JD (6). Estimates on the related annual costs for operation and maintenance (O&M) vary between 10 and 33 million JD/year. Expected effects from these investments are:  annual water savings in municipal water use of in average 55 MCM/year,  increasing efficiencies of water use in irrigation and expansions and improvements of irrigation with treated wastewater, which will correspond to the production capacity of an additional amount of water of about 29 MCM/year, Table 1: Current cost estimates for WDM measures in Jordan Program

Investment Costs1

Annual O&M Costs²

Expected annual water gains²

million JD Municipal/Domestic Water Sector: 1) Implementation of "Green 124.00 Code"

million JD Avg. Start f.o.5

Avg.

MCM Start

f.o.5

4.43

2.00

5.00

9.75

5.00

14.50

2) Water Awareness Program 3) Institutions and policies 4) Reduction of physical Losses³ 5) Reduction of administrative losses Sub‐Total 1: Agricultural Water Sector:4 6) Expansion/Improvement of treated wastewater use in irrigation 7) Improvement of Farm Irrigation Efficiency Sub‐Total 2: Total

0.22 1.25 9.83

0.16 0.85 3.00

0.23 1.30 15.5

8.96 11.87 26.70

1.50 4.00 5.00

15.30 19.75 38.00

4.69 34.47 517.55

Considered in the "Action Plan for Implementing the Water Sector Strategy", adds to utilities' budgets, but not to physical water gains

680.71

15.73

6.01

22.03

57.28

15.50

87,55

130.56

1.13

0.63

1.22

24.95

8.00

36.00

12.00

0.14

0.10

0.15

5.01

1.50

5.50

142.56 823.27

1.27 17.00

0.73 6.74

1.37 23.4

29.96 87.24

9.50 25.00

41.50 129.05

1

Source: MWI, "Action Plan for Implementing the Water Sector Strategy" (6) ² estimates by ATEEC based on information from MWI, program period 20 years ³ These costs in the "Action Plan" may not focus on the reduction of physical losses only, but may also include restructuring, renewal, extension and improved management of the network. 4 Improved water use efficiency in agriculture adds productive capacity, but does not necessarily reduce water use and water demand 5 f.o = full operation

 the billing of administrative losses of 76 MCM/year in average, which does not add directly to the water balance, but would help to increase the financial leeway of the

32


utilities. Some savings may be expected if hitherto "free" water would become subject to water tariffs, but estimations on this effect are not available. An evaluation at the current stage relies on rough approximations due to the preliminary nature of estimations of costs and benefits, but gives a first indication on potential economic efficiencies of the programs7.

4.1 WDM in the municipal sector In particular programs for WDM in the municipal sector are interlinked and may unfold their potential only under concerted implementation. Effects from the implementation of the "green code", which comprises water saving devices and technologies in resident households and new constructions, are closely linked to adjusted water awareness programs and the support by institutions and policies. The joint evaluation of these three programs shows that the discounted costs for water savings from these WDM measures would decrease ‐ at a rate of interest of 6% ‐ to 0.91 JD/m³ after 10 years and to 0.35 JD/m³ after 20 years. Figure 14: Costs of water gains from WDM programs "Green Code", "Awareness" and "Institutions & policies" For comparison, the current average water costs for municipal water amount to 0.51 JD/m³, which corresponds to discounted costs of 0.30 JD/m³ in 10 years and 1.00 0.17 JD/m³ in 20 years. 0.90

However, these figures neglect two effects:

0.80

 Water saved through WDM did already cause costs of currently 0.51 JD/m³, since this water was already provided to the municipal water supply system, but got either lost (physical NRW) or was used for avoidable purposes ("Green Code"). The consideration of the costs of saved water as benefits of WDM

0.60

JD / m³

0.70

0.50 0.40 0.30 0.20 0.10 0.00 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 year discounted costs/m³ of WDM programm discounted cost‐benefits/m3 from WDM program discounted current water costs

7

Results of the cited cost benefit analyses are compiled in appendix 5 33


measures decrease the discounted costs of water gains through the WDM program to 0.55 JD/m³ after 10 years and even 0.10 JD/m³ after 20 years. The break‐even point with the current costs of water supply would be reached around the fifteenth year of the program, i.e. water gains from WDM would be less costly afterwards.  Costs for water supply will increase in the future in particular with regard to the required investments for the Disi conveyance and the large‐scale desalinization of Red Sea Waters. A doubling of the water costs for municipal water supply from currently 0.51 JD/m³ to 1.02 JD/m³ would considerably improve the economic competitiveness and lead to a break‐even point already in the seventh year, if the costs of saved water are considered as benefits of this WDM program. The same calculations for the reduction of physical water losses indicate that the rehabilitation of municipal water systems would lead to comparatively high costs under the current cost estimates. The discounted costs for water savings through reductions of physical NRW would decrease ‐ at a rate of interest of 6% ‐ to 2.65 JD/m³ after 10 years and to 1.09 JD/m³ after 20 years. The consideration of benefits from saved water costs decreases the costs of water gains through this WDM measure to 2.30 JD/m³ after 10 years and to 0,83 JD/m³ after 20 years.

 The deterioration of municipal water networks is not a static, but a progressive progress. The expectable increase in physical water losses and the respective saving of larger water amounts would increase the economic efficiency of

Figure 15: Costs of water gains from water network rehabilitation (reduction of physical NRW) 3.00 2.50 2.00 JD / m³

This leaves a substantial gap to the alternative costs of additional water and earmarks water network rehabilitation as a last resort in cases, where the development of other water resources is restricted. Three factors may lead to improvements of the economic competitiveness:

1.50 1.00 0.50 0.00 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 year discounted costs/m³ of WDM programm discounted cost‐benefits/m3 from WDM program discounted current water costs

34


rehabilitation measures, provided that the costs for the rehabilitation do not change.  The investment and O&M costs for network rehabilitation in the current calculations are preliminary estimations and might be subject to considerable adjustments, if specific elements of the intended network rehabilitation become subject to closer examinations about possible cost minimization.  The current planning of investments in reductions of physical NRW represents the maximum solution of. This implies that also the last and most expensive marginal volumes of water would be saved. An alternative approach would be a stepwise investment planning, which starts with the least costly measures for NRW reductions and continues to add measures until a balance between costs for this WDM measure and costs of alternative water reclamation is reached. This would most probably imply the abandonment of a part of potential savings in terms of water volume, but simultaneously improve the economic competitiveness of the investments in reducing physical NRW.  A doubling of the water costs for municipal water supply from currently 0.51 JD/m³ to 1.02 JD/m³ would reduce the difference between those costs and costs for water from the WDM program on loss reduction. The break‐even point would still not be reached after 20 years, but the difference between both alternatives for water reclamation would shrink from 0.49 JD/m³ to 0.23 JD/m³.

35


4.2 WDM in the agricultural sector The expansion and improvement of treated wastewater use in irrigation as well as improvements of irrigation efficiencies in Jordanian farming would most likely not lead to water savings, but to a better economic exploitation of available water resources. Benefits from the intended investments in these programs arise from the increase in farmer's income and in the contribution of agriculture to the GDP. The assessment of other expectable effects, e.g. impacts on rural communities and labor markets, will require specific information on the farming and rural systems in the areas of the intended WDM measures (cf. chapters 2.4 and 4.3). The valuation of the increased production capacity of water from the WDM interventions with the current average operation surplus of 0.563 JD/m³ yields a negative net present value of about ‐ 50.6 million JD after 10 years, which changes to a positive value of about 28.4 million JD after a program period of 20 years. The break‐even point occurs between the sixteenth and seventeenth year of the program. Figure 16: Cost and benefits of intended WDM measures in irrigation (rate of interest: 6%) 300

million JD

250 200 150 100 50 ‐ 0

1

2

3

4

5

6

7

8

9 10 11 12 13 14 15 16 17 18 19 20 year

accumulated discounted costs accumulated. discounted benefits at OS = 0.563 JD/m³ accumulated discounted benefits at OS = 0.789 JD/m³

However, improved irrigation technologies and additional irrigation capacities from treated wastewater may be used in the first place for vegetable production, which yields an average operation surplus of 0.789 JD/m³. This would still lead to a negative net present value of about 14.4 million JD in the tenth year of the program, but would increase this value to about 98.4 million JD in the twentieth year and advance the break‐even point to the period between the eleventh and twelfth year.

36


4.3 Consideration of effects from inter‐sectoral water transfers The economics of investments in WDM measures for irrigation takes a different angle, if gains in the production capacity of water and increased use of treated wastewater imply the transfer of corresponding freshwater quantities to the sector of municipal water use. Transfer of freshwater from agriculture to municipal water use and its replacement with an equivalent production capacity of water would leave agriculture in the beginning in the same situation than before the WDM program. However, additional freshwater for municipal purposes generates again additional amounts of wastewater, which can be treated and re‐ channeled to agriculture. The resulting effects are additional benefits on the side of municipal water users as well as on the side of farmers. The intended WDM investments for irrigation would already reach their break‐even point after the fifth year under the assumption of: Figure 17: Costs and benefits of water transfer from agriculture to municipal water use 700 600

million JD

500 400 300 200 100 0 0

1

2

3

4

5

6

7

8

9

10 11 12 13 14 15 16 17 18 19 20 year

accumulated discounted costs accumulated discounted benefits (OS agric. = 0.563 JD/m³) accumumulated discounted benefits (OS agric. = 0.789 JD/m³)

 a water value of 0.563 JD/m³ in irrigation  a water value of 1.49 JD/m³ in municipal use  a return flow of 50% of water for municipal use as treated wastewater and  an interest rate of 6%.

37


The net present value of the program would be up to about 142.8 million JD after 10 years and reach about 403.1 million JD after a program period of 20 years. Discounted benefits for farmers would amount to about 45 million JD after 10 years and 87.3 million JD after 20 years. Discounted benefits for municipal water users would add up to 238.4 million JD after 10 years and about 462.1 million JD after 20 years. The same calculation with a water value of 0.789 JD/m³ in irrigation, i.e. the average operation surplus of vegetables, does not change the break‐even point but leads to a higher net present value of 160.9 million JD after 10 years and about 462.1 million JD after 20 years. The beneficiaries of this increase would be farmers, who would achieve discounted benefits of 63.1 million JD after 10 years and of 122.3 million JD after 20 years. However, the stated costs for the concerned WDM measures do not consider potentially required additional investments in the upgrade of conveyance systems for the transfer of freshwater to urban areas and the additional costs for treatment and conveyance of the return flows of wastewater. The incorporation of such additional costs may lead to certain adjustments in the competitiveness of the scenario on intersectoral water transfer.

38


4.4 Conditions for economic assessments The preceding analyses of costs and benefits from intended WDM measures already addressed the shortcomings in information, which will be required for an extension towards cost‐effectiveness analyses and comprehensive economic assessments. An exemplary comparison of program evaluations in the municipal and agricultural sector showed, that Jordan's institutionalized data collection systems are suitable for the assessment of programs that focus on benefits in water management, i.e. direct impacts on water losses and savings. But assessments of impacts from water management programs on the level of households and farms face constraints in particular with regard to effects on livelihoods and economic effects through changes in water users' decision making and behavior. Comprehensive economic assessments would require additional information at least on the status of and impacts on family incomes, cash availability, resource endowment and related uncertainties. Evaluations of such parameters rely currently on non‐recurring data collections of evaluation missions, which have the disadvantage of being rarely comparable amongst each other and prohibit a continuous, dynamic observation of program effects (see Box 4). Affirmative relief could come from adjustments in the comprehensive quinquennial surveys of the different ministries and the Department of Statistics (DOS). Improvements should focus on the data storage structure and accessibility rather than the volume and type of the already collected data. The goal of restructuring would be to enable analyses of decision units, i.e. households or farming systems, by indexing all information that belongs to an individual unit. Accessibility would require a service unit for authorized queries. However, potential restrictions due to Jordan's approach to data privacy may require further analysis.

39


Box 4: Examples of program assessments Municipal water sector: The corporatization of water and sanitation services allows for a direct qualitative and quantitative evaluation of its major benefits due to continuous data collection on O&M costs, security of continuous water supply and development of NRW. The results from the assessment of 5 projects under the corporatization program allowed for the calculation of Net Present Values and Internal Rates of Return, which provide a basis for objective comparisons between their individual efficiencies. Example 1: Corporatization: Cost effectiveness analysis results Corporatization

Total water Total saving saving (MCM) (M JD)

At 100% of saving

At 50% of saving

NPV

IRR

NPV

IRR

Amman Management Contract

29.07

25.87

5.49

27.3%

‐1.15

4.8%

NGWA Managing Consulting

1.36

1.21

‐3.57

NA

‐4.02

NA

Aqaba Water Company

4.31

3.83

0.86

33%

‐0.33

‐2.1%

Madaba PSP

‐0.39

‐0.35

‐1.19

NA

‐1.07

NA

Miyahuna Company

9.53

8.48

4.41

186.4%

1.22

79.8%

Source: Diagnostic Report of the Jordan Water Demand Management Study, ATEEC/QUASIR 2011 NA: Not applicable

Agricultural water sector: The analysis of Participatory Irrigation Management (PIM) via the creation of Water Users Associations (WUA) in the Jordan Valley yielded a number of positive indications on the impacts of the program, which led to the decision to expand this approach to most areas of the Valley. However, quantitative data on benefits exist only on reductions in O&M cost, while the majority of benefits may come from higher efficiencies in the use of land and water by farmers. Required data for the quantification of these effects may be hidden in the files of the last agricultural survey, but are difficult to access. Current evaluations rely on case studies only. An assessment of the justifiable funding for the overall program as well as comparisons with alternative lines of action is thus not possible yet. Example 2: PIM: Model‐based impact estimations, case study from the southern Jordan Valley Indicators Price elasticity Total cultivated area Crop intensity Total Revenue

Unit % Ha % US$ Source: Al‐Habbab & Al‐Absi (2003)

Before PIM 1.3 268.6 82 844,532

After PIM 1.7 388.3 118 1,138,979

40


Conclusion The value of water demand in Jordan still exceeds the costs of water provision, but does so only by overpumping of groundwater resources. An adjustment between supply and demands by the exploitation of new water resources will only be possible in the long term run and lead to an articulate increase in water costs. Potential reductions in water demand through WDM measures will not be sufficient to bridge the full gap in the meantime, but would help to alleviate the pressure on Jordan's natural water resources. Future challenges in the demand side of Jordan's already stressed water balance will originate in particular from the development in domestic and municipal water use. Growth in industrial water demand may actually be stronger in proportions, even if it stays far behind in the absolute amount of water. A major lesson from the scenario analyses of water demand is that all WDM measures need some years after their initiation until they unfold their full effects. This emphasizes the necessity to translate already decided measures as quick as possible into practice and to speed up the specification of conclusive WDM programs for industries and – to a certain extent ‐ tourism. WDM in agriculture has certainly the potential to increase economic water use efficiencies, but does not necessarily lead to a decrease in agricultural water demand. Water is an important, but just one among many constraints for Jordanian farming systems. The impacts of a cap on water for agriculture will depend to a large extent on the frame conditions and their adjustments for the individual types of farming systems. At this point Jordan will have to decide, what kind of agricultural and rural structures are worthy of preservation and which structural adjustments may be required for the sustainable development of the agricultural sector.

41


References (1) J.A. Allan (2002) The Middle East Water Question. I.B. Tauris Publishers, London, New York. (2) MWI (2010): Aggregated file on water demand and supply 2008‐2025 (3) Howard G., Bartam J. (2003) Domestic Water Quantity, Service Level and Health. World Health Organization, Geneva, Switzerland (4) MWI (2009): Water for Life. Jordan's Water Strategy 2008‐2022. Rev. 10.270309 (5) Ministry of Agriculture / DOS (2007): Agricultural survey (6) MWI (2009) Action Plan for Implementing the Water Sector Strategy. Available at: www.mwi.gov.jo/sites/en‐us/Downloads/ActionPlan.pdf (last visited: Dec. 12, 2011)

Additional readings: 1. IDARA (Instituting Water Demand Management In Jordan). Second Year Progress Report, October 2008‐September 2009 2. MWI/IDARA application of the Alliance Water Use Efficiency (AWE). Water Demand Growth Forecast NGWA, Miyahuna, AWC. MWI, 2011. 3. O’Neill & Siegelbaum and The RICE Group. Hotel Water Conservation ‐ A Seattle Demonstration. Seattle Public Utilities Resource Conservation Section, 2002. 4. Salman, A., Al‐Karablieh, E., and Haddadin, M., Limits of Pricing Policy in Curtailing Household Water Consumption Under Scarcity Conditions, Water Policy, 2008, Vol. 10, P 295‐304.

42


Appendix 1: Water Demand Table A1.1: Municipal water supply for the different governorates in Jordan for the years 2000 till 2008 in MCM Governorate 2000 2001 2002 Amman 91.3 93.6 94.1 Zarqa 31.8 32.7 34.4 Mafraq 30.1 18.9 16.9 Jarash 9.2 30.9 4.1 Ajloun 2.4 3.9 3.5 Balqa 4.2 3.1 18.3 Irbid 18.5 15.2 31.4 Tafila 16.3 5.9 3.0 Karak 3.2 9.4 11.2 Ma'an 5.6 2.6 8.0 Aqaba 15.2 7.7 14.7 Madaba 7.5 15.0 6.1 Total 235.4 239.0 245.6 Source: MWI files and annual reports

2003 106.3 37.0 17.3 3.8 3.4 18.1 31.6 3.1 10.2 7.1 15.0 5.9 258.7

2004 118.5 37.7 16.9 4.4 3.1 20.2 32.8 3.1 11.0 7.1 15.0 6.1 275.8

2005 119.9 38.4 17.5 4.1 3.6 21.3 34.4 3.5 11.0 7.1 15.0 6.2 282.0

2006 122.0 40.3 17.6 4.1 3.6 21.2 34.2 3.7 11.5 7.5 14.3 6.4 286.3

2007 2008 2009 124.8 128.7 129.0 44.6 44.8 46.7 18.2 18.6 20.3 4.2 4.6 4.6 3.8 3.8 3.9 21.7 21.4 23.1 36.0 39.2 37.0 4.0 4.6 4.9 12.9 13.7 14.6 8.5 9.3 9.1 15.4 14.3 12.4 6.9 7.4 7.8 300.9 310.4 313.4

Table A1.2: Share of Non‐Residential Water in Billed Municipal Water per Governorate Year Governorate Amman Balqa Zarqa Madaba Irbid Mafraq Jarash Ajloun Karak Tafila Maan Aqaba Jordan

2001

2002

12.5% 13.0% 7.5% 10.5% 8.8% 17.3% 7.9% 6.6% 9.8% 19.2% 40.0% 70.4% 16.6%

12.5% 15.4% 6.3% 7.6% 7.5% 13.4% 7.7% 10.9% 10.0% 12.1% 32.4% 69.6% 16.1%

2003 11.5% 14.5% 11.7% 9.5% 7.5% 16.3% 7.8% 8.7% 12.0% 14.7% 29.5% 68.9% 16.1%

2004 11.9% 15.6% 5.7% 7.7% 7.1% 13.6% 7.7% 11.1% 10.5% 12.4% 21.7% 68.9% 14.8%

2005 12.2% 15.0% 11.7% 7.3% 8.4% 14.4% 7.0% 9.4% 10.5% 13.1% 37.4% 68.3% 16.4%

2006

2007

2008

2009

18.0% 14.6% 14.3% 8.5% 8.8% 14.8% 6.8% 8.8% 11.0% 14.4% 32.8% 69.0% 19.4%

18.0% 13.9% 11.4% 9.8% 10.1% 15.8% 7.2% 10.0% 11.2% 15.0% 30.2% 69.0% 19.1%

18.0% 13.1% 8.4% 11.1% 11.3% 16.9% 7.5% 11.1% 11.4% 15.7% 27.6% 69.0% 18.8%

18.0% 13.1% 8.4% 11.1% 11.3% 16.9% 7.5% 11.1% 11.4% 15.7% 27.6% 69.0% 18.8%

Source: WAJ, 2010

43


Table A1.3: Projected irrigated areas in the Jordan Valley and in the highlands (in ha, NWMP, 2004) Region Uplands JRV Total

1998 59,576 25,391 84,967

2005 59,576 39,691 99,267

2010 59,576 42,291 101,867

2015 59,576 42,291 101,867

2020 59,576 42,291 101,867

2025 59,576 42,291 101,867

Source: NWMP (2004)

Figure A1.1: Irrigation water use by sources in the Jordan Valley

Source: NWMP (2004)

Figure A1.2: Irrigation water use by sources in the Highlands

Source: NWMP (2004)

44


Table A1.4: Summary of irrigation water use and sources in MCM for 2003‐2009 Water Resource 2003 2004 Surface water 101.163 125.308 Groundwater 278.699 251.452 Treated WW 75.396 86.422 Total 455.258 463.182 Source: MWI Water budget, 2009

2005 187.75 254.649 83.545 525.944

2006 185.084 245.503 80.3 510.887

2008 160.50 236.067 101 497.567

2007 176.366 244.81 90.97 512.146

2009 159.877 245.755 102.36 507.992

Table A1.5: Development of irrigation water demand in agriculture in million cube meters (MCM) Year

1994

1995

Up‐Land

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

Field Crops

130

167

130

172

147

26

78

77

190

124

108

164

159

109

106

Vegetables

58

104

46

50

69

73

57

51

68

68

72

86

82

54

75

Fruit Trees

253

257

260

311

315

319

322

324

325

326

326

326

326

300

301

Total

440

528

435

533

531

418

457

452

584

518

506

576

567

463

481

Jordan Valley

Field Crops

17

18

14

25

19

12

18

13

13

11

11

18

14

13

16

Vegetables

59

54

55

58

51

53

61

56

54

50

59

56

63

69

73

Fruit Trees

82

91

98

98

103

105

112

112

118

91

93

93

96

103

105

158

163

167

181

173

170

190

181

185

152

163

167

174

185

195

598

691

602

714

704

588

648

633

769

670

669

743

741

648

676

Total Grand Total Source: JVA, WAJ

Table A1.6: Irrigation water use and projected irrigation water demand per governorate until 2025 in MCM Governorate Ajloun Amman Aqaba Aqaba_Valley Balqa Balqa_Valley Irbid Irbid_Valley Jarash Karak Karak_Valley Madaba Mafraq Ma’an Tafilah Zarqa Total

1998 14.0 74.6 24.4 4.7 20.3 112.4 20.7 96.0 33.2 38.2 27.9 5.7 163.8 106.7 24.9 133.0 900.5

2005 13.3 74.5 24.4 4.1 20.1 273.9 20.5 130.3 32.9 37.8 27.9 5.7 163.8 106.7 24.4 133.3 1093.4

2010 12.2 73.8 23.8 7.3 19.4 269.7 19.6 121.9 30.7 35.4 33.6 5.6 162.3 106.7 23.4 130.1 1072.3

2015 11.1 73.3 23.2 7.2 19.2 256.6 19.0 116.6 29.4 34.0 33.3 5.5 161.3 101.2 22.5 126.1 1039.7

2020 10.0 72.1 22.6 7.2 18.4 232.8 18.0 104.8 26.8 31.3 32.6 5.4 159.6 98.2 21.0 122.1 982.7

Source: NWMP (2004) with a taken from Jordan’s water strategy for the year 2022

45

2025

1000a


Table A1.6: Development of water demand of different industries in 1000 m³ Year

1999

Large scale industries Mining and quarrying Coke, refined petroleum products and nuclear fuel Chemicals Other non‐metallic mineral products Total Large‐scale industries annual change in % Other industries Oil & Gas Food products and beverages Tobacco products Textiles Wearing apparel, dressing and dyeing of fur Leather Wood Paper Publishing, printing and reproduction of recorded media Rubber and plastics Basic metals Fabricated metal products, except machinery and equipment Machinery and equipment Electrical machinery and apparatus Medical, precision and optical instruments, watches and clocks Motor vehicles, trailers and semi‐trailers Other transport equipment Furniture Electricity, gas, steam and hot water supply Total Other industries annual change in % Total Water consumption therefrom large‐scale industries in % therefrom small‐scale industries in % annual change Total

2000

2001

2002

2003

2004

2005

7063.8 22.8 5649.7 1435.3 14171.6 5.0 2605.9 38.5 105.8 125.2 43.8 22.3 552.9 90.3 249.9 206.6 174.3 54.4 90.8 14.4 24.3 0.3 136.4 1192.2 5728.3 19904.9 71.2% 28.8%

2006

2007

7983.9 1023.3 7043.6 4493.9 20544.7 4.5% 2.7 3957.0 120.8 113.7 797.4 42.5 71.5 511.3 391.3 358.3 805.2 466.6 183.0 204.7 61.6 53.6 8.2 313.0 1259.9 9719.6 14.8% 30267.0 67.9% 32.1% 7.6%

10212.5 1142.6 8579.8 5352.9 25287.8 23.1% 2.4 5424.2 118.4 131.4 672.3 67.8 76.3 421.8 237.9 423.3 1045.2 530.5 160.6 82.0 381.4 53.4 9.2 340.2 1285.7 11461.6 17.9% 36751.8 68.8% 31.2% 21.4%

6393.1 23.5 4726.4 1592.8 12735.8 ‐10.1%

6052.6 21.4 4242.3 2171.3 12487.6 ‐1.9%

5858.2 26.1 4886.4 2261.4 13032.1 4.4%

5983.4 59.5 5106.1 2307.8 13456.8 3.3%

7172.1 773.6 6130.2 2743.0 16818.9 25.0%

8670.2 1006.2 6602.3 3384.1 19662.8 16.9%

3.9 2415.5 19.0 79.3 204.5 50.6 23.7 288.8 82.4 284.6 139.8 176.2 71.7 38.5 25.1 29.0 0.2 163.9 1213.3 5306.1 ‐7.4% 18045.8 70.6% 29.4% ‐9.3%

3.6 2470.0 85.8 108.1 196.2 47.6 35.0 279.2 124.6 232.5 327.8 224.3 88.3 74.1 29.9 46.9 0.1 165.2 866.5 5402.1 1.8% 17893.3 69.8% 30.2% ‐0.8%

2.8 2526.0 98.2 107.6 270.9 51.8 33.0 300.5 125.4 216.1 408.8 200.4 89.0 76.7 29.7 21.6 0.3 151.0 956.0 5663.0 4.8% 18697.9 69.7% 30.3% 4.5%

2.8 2455.0 88.5 109.2 356.4 24.4 27.4 321.0 115.4 211.5 493.6 192.6 93.8 77.2 34.4 21.8 0.4 106.4 987.3 5716.3 0.9% 19175.9 70.2% 29.8% 2.6%

3.0 3037.3 106.0 107.2 428.7 51.9 54.6 332.5 187.2 218.6 670.3 245.8 118.8 109.7 35.6 26.7 2.3 117.9 1117.1 6968.2 21.9% 23790.1 70.7% 29.3% 24.1%

2.5 3481.5 99.4 107.1 742.3 35.5 60.8 477.2 215.0 250.2 861.4 342.3 144.4 158.1 62.1 45.8 2.2 186.7 1198.1 8470.1 21.6% 28135.4 69.9% 30.1% 18.3%

Source: estimated from WAJ billing data, based on water tariff for industry in the respective year

Table A1.7: Industrial water use and water resources for 2006‐2009 in MCM 2006 34.4 4.0 38.5

Groundwater Surface water Total

2007 44.9 3.5 48.4

2008 34.3 3.9 38.2

2009 33.0 3.1 36.1

Source: MWI Water budget, 2009

Table A1.8: Summary of natural demand for Jordan Location Al Azraq oasis Wadi Mujeb Wadi Wala Total Dead sea Total

Demand MCM 10 38 6.6 54.6 1200 1254.6

Note Jordan

Regional demand Regional and Jordan demand

Source: based on MW (2004, 2009) and BGR (2004)

46

2008 10761.6 1314.0 10903.7 6958.7 29938.0 18.4% 22.3 7458.6 119.7 106.0 1184.8 58.9 81.8 468.2 311.1 468.5 1828.9 820.1 310.7 118.4 377.5 58.8 40.6 402.0 1400.8 15615.4 36.2% 45575.7 65.7% 34.3% 24.0%


Appendix 2: Water Supply Table A2.1: Long term average surface runoff in MCM for the different surface catchments in Jordan Surface Water Basin Yarmouk River (at Adasiya) Jordan River Valley North Rift Side Wadis South Rift Side Wadis Zarqa River Dead Sea Side Wadis Wadi Mujib Wadi Hasa Wadi Araba North Wadi Araba South Southern Desert Azraq Sirhan Hammad Jafer Total

Base Flow (MCM/year) 105 19.3 36.1 24.8 33.5 54 38.1 27.4 15.6 2.4 0 0.6 0 0 1.9 358.7

Flood Flow (MCM/year) 155 2.4 13.9 7.7 25.7 7.2 45.5 9 2.6 3.2 2.2 26.8 10 13 10 334.2

Total Flow (MCM/year) 260 21.7 50 32.5 59.2 61.2 83.6 36.4 18.2 5.6 2.2 27.4 10 13 11.9 692.9

Source: MWI files, and MEDITATE Project progress report (2004)

Table A2.2: Groundwater basins in Jordan and their safe yields (BGR, 2004) Basin 1. Yarmouk 2. Amman Zarqa 3. Jordan Rift Side wadis 4. Jordan Valley 5. Dead Sea 6. Azraq basin 7. Hammad basin 8. Wadi Araba North 9. Wadi Araba south 10. Sirhan Total renewable 11. Jafer 12. DISI Total Non renewable

Safe yield MCM 30‐35 60‐70 28‐32 15‐20 40‐50 30‐35 12‐16 5‐7 4‐6 7‐10 231‐281 7‐10 100 107‐110

Source: BGR (2004)

47


Figure A2.1: Groundwater basins in Jordan and their estimated safe yields

Source: BGR (2004)

48


Figure A2.2: Safe Yield and over abstraction from the renewable groundwater basins in 2009

Source: based on MWI Water Budget 2009 Table A 2.3:

Projection of Jordan’s water resources

Year Red Dead Conveyance Project / Desalinated water Renewable GW (Abstraction for all uses) Groundwater safe yield Return Flow Over abstraction Desalination brackish water Abu Zighan Deir Alla Area Hisban‐kafrein 1 Mujib Zara Maen at Suweimeh Non ‐ Renewable Groundwater Disi Jafr Lajjoun fossil water Surface water New dams Water harvesting Yarmouk River to Jordan other 2 Peace Treaty 3 Treated Wastewater Total Resources 1 surface water that requires desalination 2 Water Strategy 2 Report: Water use efficiency in Jordan, CEC Source: data provided by MWI, March 2011

2010

405 275 54 76 57 10

47 74 61 7 6 189

30 159 50 117 892

2015 MCM/year 380 275 54 51 82 10 5 20 47 154 122 18 14 197 5 3 30 159 50 165 1.028

2020

2025

210 355 275 54 26 82 10 5 20 47 154 122 18 14 218 25 4 30 159 50 223 1.292

370 329 275 54 0 82 10 5 20 47 154 122 18 14 229 35 5 30 159 50 247 1.461

49


Appendix 3: Water Demand Scenarios Table A3.1: Estimations used in scenario development Sector of water demand and data sets Resident Water Demand (Domestic Water Demand) Set 1: projection of corporate utilities. Estimates for governorates without such utilities based on NGWA average Set 2 : green code projection of corporate utilities, estimates for governorates without such utilities based on NGWA average Set 3 : specification by PMU, interpretation for governorates by MWI Set 4 : specification by PMU, interpretation for governorates by MWI, reductions according to utilities' green code estimates Set 5 : starts with l/c/d of UBS (utilities) in 2010, but increases to MWI medium specification until 2020, proportional increase in the governorates Set 6 : l/c/d according to set 3 (MWI), NRW according to set 1 (utilities)

Used in scenario Trend a, (USB norm) Trend b (USB GC) Aspiration a (CS) Aspiration b (OE)

Inter‐sectorial allocation (IA) Business as usual (BAU) Non‐Resident Water Demand (Commercial, Governmental, Health, Education, other except industry and tourism) Set 1: projection of corporate utilities, estimates for governorates without such All scenarios utilities based on NGWA percentage of domestic water UFW / NRW (unaccounted‐for water / non‐revenue water) in % of municipal water supply Set 1: Estimation of loss development by utilities, sub‐divided in administrative and physical losses (IDARA‐accounting, NRW savings). Other governorates: based on CS, IAA, UBS norm assumption by NGWA Set 2: Estimation of loss development by new specifications of MWI OE, UBS GC (scenario BAU: unchanged loss level of 2009) Industrial Water Demand Set 1: sum of sets 1a‐1c, data on small industries from utilities, data on large IAA, UBS, industries and new mining from MWI Set 1a: Development of WD of "small industries" (industries supplied by municipal IAA, UBS water supply) based on data from utilities Set 1b: large industries (supply by own wells, data by MWI) IAA, UBS Set 1c: new oil shale and uranium mining according to statements of MWI, IAA, UBS, BAU distribution: oil shale: 40% Karak, 40% Tafilah, 20% Ma'an, uranium: 100% Ma'an Set 2: Development of industrial WD according to specifications of MWI summary file CS, OE Set 3: Estimation by (1) set 3a: trend model based on MWI data on industrial WD BAU from 1994 ‐2008 + (2) set 1c: new energies, distribution between governorates according to distribution in set 2 Set 3a: Estimation by trend model based on MWI data on industrial WD from 1994 ‐ BAU 2008 Touristic Water Demand Set 1: Development of WD based on data from utilities UBS, IAA, BAU Set 2: Development of WD based on MWI estimations CS, OE Agricultural Water Demand Set 1: Development of WD based MWI estimates CS, OE, UBS Set 2: Development based MWI estimates ‐ additional domestic water demand in IAA scenario IAA (set1 ‐ set 5 of projected resident WD) Set 3: average (1994‐2008) of current supply according to data from MWI BAU

Source: scenario development workshops MWI, supported b, QUASIR & ATEEC, 2010/11

50


Figure A3.1: Scenario drivers

Table A.3.2: Impact of drivers Situation

baseline

A B C D 1

3 2

Domestic water demand1

Water demand by already Other urban existing industries and infrastructure tourism (commerce, offices, hospitals etc.) 112 l/c/d x medium Percentage of municipal according to growth rate estimate of population1 water demand as stated estimates (MWI/NWMP for by utilities CS, statistical deduction for BAU) 2 120 l/c/d x high estimate Baseline per capita x high growth rate + 50% of population estimate of population 100 l/c/d3 x high estimate Baseline per capita x high growth rate ‐ 50% of population estimate of population 120 l/c/d2 x low estimate of Baseline per capita x low growth rate + 50% population estimate of population 100 l/c/d3 x low estimate of Baseline per capita x low growth rate ‐ 50% population estimate of population

scenario BAU: 96 l/c/d, scenario USB: estimates of utilities scenario BAU: 102.5 l/c/d, scenario USB: estimates of utilities scenario BAU: 85.5 l/c/d, scenario USB: estimates of utilities

51


Table A3.3: Ranges of determinants in water demand

minimum 1

expected

maximum

Avg. demographic growth / year

2.06 %

2.14%

2.62%

Avg. growth Industrial water demand / year

1.3 %

2.6 %

3.9%

Municipal water demand 2010 ‐> 2025

‐ 20%

Aspired: 112 lcd

+ 20%

Trend: 75 –> 83 lcd NRW total / physical

2015

33 % / 13%

38% / 18%

2020

27 % / 7%

36% / 16%

2025

24% / 3.5 %

35% / 14%

water demand management municipal water:

2015

‐ 0%

‐ 19.1 %

2025

‐ 0%

‐ 21.4%

Assumption by utilities

4.5 %

8.1 %

11.1 %

Assumption by MWI

2.9 %

5.5 %

7.7 %

avg. growth in water demand for Tourism

Source: scenario development workshops MWI, supported by QUASIR & ATEEC 2010/11 and data files from MWI and public utilities 1

Data on demographic growth according to HPC, 2009. The analysis of the demographic prognoses led to a request of the scenario developers to the HPC due to some discrepancies in the official figures. The response of HPC was still pending at the end of this study, but may lead to adjustments in the official figures in the future. Scenario calculations in this report rely on the currently authorized figures, which were also published by Jordan's Department of Statistics (DOS).

Table A3.4: Development of water losses, Aspiration & Trend scenarios (a) year:

2010

total

Amman

2015

physical

admin.

total

37,9%

18,8%

19,0%

Balqa

52,2%

34,8%

Zarqa

54,4%

Madaba 1

Irbid 1

Mafraq 1

Jarash

2020

physical

admin.

total

37,1%

17,9%

19,3%

17,4%

47,5%

30,1%

36,2%

18,1%

49,5%

49,6%

33,1%

16,5%

32,4%

20,3%

62,2%

2025

physical

admin.

total

36,4%

16,9%

19,5%

17,4%

44,2%

26,8%

31,4%

18,1%

46,0%

45,2%

28,6%

16,5%

12,1%

30,2%

17,6%

39,0%

23,1%

58,0%

physical

admin.

Utility

35,7%

16,0%

19,7%

Miyahuna

17,4%

40,8%

23,4%

17,4%

WAJ

27,9%

18,1%

42,5%

24,4%

18,1%

WAJ

42,0%

25,4%

16,5%

38,8%

22,3%

16,5%

WAJ

12,6%

28,7%

15,6%

13,0%

27,1%

13,7%

13,4%

NGWA

33,8%

24,2%

55,0%

30,0%

25,0%

52,1%

26,3%

25,8%

NGWA

29,6%

18,6%

11,0%

27,6%

16,1%

11,5%

26,2%

14,3%

11,9%

24,8%

12,5%

12,3%

NGWA

1

Ajlun

33,3%

20,9%

12,4%

31,1%

18,1%

13,0%

29,5%

16,1%

13,4%

27,9%

14,1%

13,8%

NGWA

Karak

58,8%

39,2%

19,6%

53,5%

33,9%

19,6%

49,7%

30,1%

19,6%

46,0%

26,4%

19,6%

WAJ

Tafiela

49,7%

33,2%

16,6%

45,3%

28,7%

16,6%

42,1%

25,5%

16,6%

38,9%

22,3%

16,6%

WAJ

Ma'an

53,1%

36,5%

16,5%

48,1%

31,6%

16,5%

44,6%

28,1%

16,5%

41,1%

24,6%

16,5%

WAJ

Aqaba

22,7%

12,3%

10,4%

20,3%

11,5%

8,8%

18,4%

10,7%

7,6%

18,1%

10,0%

8,1%

AWC

1

NGWA serves 4 governorates and only aggregated accounts were available. The assignment of losses to a specific governorate followed a distribution proportional to the percentage of losses in the last recorded year, i.e. 2009, according to the following formulae: Administrative losses per governorate = ∗ and physical losses per governorate = ∗ with: TLG = Total water losses of Governorate G in %, calculated by

TLN = Total water losses of NGWA in 2009 in % ALN = Administrative water losses of NGWA in the respective year of the scenario as estimated by NGWA RLN = Physical water losses of NGWA in the respective year of the scenario as estimated by NGWA

52


Table A3.5: Development of water losses, Aspiration & Trend scenarios (b) year:

2010

2015

2020

physical

admin.

total

11,6%

19,3%

25,2%

2025

physical

admin.

total

5,7%

19,5%

21,6%

total

physical

admin.

total

Amman

37,9%

18,8%

19,0%

30,9%

physical

admin.

utility

1,9%

19,7%

Miyahuna

Balqa

52,2%

34,8%

17,4%

42,6%

25,2%

17,4%

34,7%

17,3%

17,4%

28,3%

10,9%

17,4%

NWMP

Zarqa

54,4%

36,2%

18,1%

44,3%

26,2%

18,1%

36,1%

18,0%

18,1%

29,5%

11,3%

18,1%

NWMP

Madaba

49,6%

33,1%

16,5%

40,4%

23,9%

16,5%

33,0%

16,4%

16,5%

26,9%

10,4%

16,5%

NWMP

Irbid

32,4%

20,3%

12,1%

26,4%

13,8%

12,6%

22,7%

9,6%

13,0%

19,5%

6,0%

13,4%

NGWA

Mafraq

62,2%

39,0%

23,1%

50,7%

26,4%

24,2%

45,0%

20,0%

25,0%

45,8%

20,0%

25,8%

NGWA

Jarash

29,6%

18,6%

11,0%

25,4%

13,9%

11,5%

21,8%

9,9%

11,9%

18,7%

6,5%

12,3%

NGWA

Ajlun

33,3%

20,9%

12,4%

27,1%

14,2%

13,0%

23,3%

9,9%

13,4%

20,0%

6,2%

13,8%

NGWA NWMP

Karak

58,8%

39,2%

19,6%

47,9%

28,3%

19,6%

39,1%

19,5%

19,6%

31,9%

12,3%

19,6%

Tafiela

49,7%

33,2%

16,6%

40,6%

24,0%

16,6%

33,1%

16,5%

16,6%

27,0%

10,4%

16,6%

NWMP

Ma'an

53,1%

36,5%

16,5%

43,3%

26,7%

16,5%

35,3%

18,7%

16,5%

28,8%

12,2%

16,5%

NWMP

Aqaba

22,7%

12,3%

10,4%

19,5%

10,7%

8,8%

18,6%

10,9%

7,6%

17,7%

9,5%

8,1%

AWC

1

NGWA serves 4 governorates and only aggregated accounts were available. The assignment of losses to a specific governorate in 2010 followed a distribution proportional to the percentage of losses in the last recorded year, i.e. 2009, according to the formulae stated in table A1.3.1. Physical water losses in all other5‐ year intervals are calculated according to the specifications of MWI by 5 If total losses in previous interval > 30%: total losses * (1‐0.96) – administrative losses of current interval 5 If total losses in previous interval > 20% and < 30%: total losses * (1‐0.97) – administrative losses of current interval 5 If total losses in previous interval < 20%: total losses * (1‐0.99) – administrative losses of current interval Administrative water losses develop according to the assumptions of the corporate utilities

Development of water demand, "Aspiration" scenarios1

Table A3.6:

year

2010 1

2

3

4 5

(min‐max)

476

527

573

422

(437‐515)

(498‐586)

(559‐657)

(381‐450)

(min‐max)

Tourism (min‐max)

(min‐max)

9

10

(359‐442)

424 (380‐486)

64

90

107

117

64

90

107

117

(64‐64)

(77‐103)

(98‐115)

(112‐122)

(64‐64)

(77‐103)

(98‐115)

(112‐122)

13

21

26

29

13

21

26

29

(13‐13)

(17‐25)

(19‐34)

(20‐40)

(13‐13)

(17‐25)

(19‐34)

(20‐40)

0

0

70 30 819

0

0

70 30 670

499

587

499

490

(458‐527)

(531‐643)

(666‐785)

(791‐919)

(458‐527)

(437‐538)

(526‐640)

(612‐748)

863

1069

1214

775

863

1069

1214

775

277

276

390

425

277

373

519

574

(248‐317)

(220‐332)

(314‐433)

(325‐453)

(248‐318)

(325‐426)

(459‐573)

(496‐633)

TWW² (min‐max)

(343‐410)

2025

20 30 580

Resources³(without TWW) Remaining Water Resources1 8 Freshwater (min‐max)

Scenario (b), OE MCM/year 2015 2020 379 397

20 30 709

7

2010

(381‐450)

Industry

Nuclear Reactors Freshwater TWW² Total (sum 1‐4)

2025

422

Water Demand 1 Municipal

Scenario (a), CS MCM/year 2015 2020

217

248

246

271

217

200

182

197

(197‐232)

(227‐270)

(229‐280)

(260‐319)

(197‐232)

(180‐217)

(159‐208)

(170‐233)

494

524

636

696

494

573

701

771

(480‐514)

(490‐559)

(594‐662)

(644‐713)

(480‐515)

(543‐606)

(667‐732)

(729‐803)

117

165

223

247

117

165

223

247

0

97

130

149

(min‐max) 0 (94‐105) (139‐144) 1 2 Figures represent the situation under a medium demographic and economic development, TWW = treated wastewater ³ Information from MWI, data file from 30.03.2011

(171‐180)

11

12

Total (min‐max)

For comparison: planned TWW by MWI³ Freshwater savings

53


Table A3.7:

Valuation of water use (except nuclear energy), "Aspiration" scenarios

year Municipal

Value1 JD/m³

Scenario (a), CS Million JD/year 2015 2020 709 785

Scenario (b), OE Million JD/year 2015 2020 565 592

1.49²

2010 628

2025 854

2010 628

2025 632

(min‐max)

(568‐671)

(651‐767)

Industry

77.63³

4,962

6,990

(742‐873)

(834‐979)

(568‐671)

(520‐610)

(562‐658)

8,274

9,083

4,962

6,990

8,274

(min‐max)

(4,962‐ 4,962)

(5,976‐ 8,004)

9,083

(7;632‐ 8;917)

(8;679‐ 9;487)

(4,962‐ 4,962)

(5,976‐ 8,004)

(7;632‐ 8;917)

(8;679‐ 9;487)

Tourism

107.004

366

589

723

812

366

589

723

812

(min‐max)

(366‐366)

(478‐700)

(532‐940)

(565‐ 1,113)

(366‐366)

(478‐700)

(532‐940)

(565‐ 1,113)

(620‐725)

0.595

278

296

358

392

278

323

395

434

(min‐max)

(270‐290)

(276‐317)

(335‐380)

(363‐415)

(270‐290)

(306‐342)

(376‐412)

(411‐452)

Total

6,235

8,583

10,141

11,141

6,235

8,466

9,985

10,961

(min‐max)

Agriculture

(6,186‐ (7,421‐ (10,492‐ (10,492‐ (6,186‐ (7,314‐ (9,139‐ (10,315‐ 6,269) 9,747) 11,942) 11,942) 6,269) 9,620) 10,890) 11,735) 1 2 average values per sector, cf, water valuation report, July 2011, value based on total costs of public network and opportunity costs 4 ³ operation surplus according to UNSNA definitions per m³ in 2008, net value added per m³ in hotels and restaurants 5 operation surplus according to UNSNA definitions per m³ in 2008, weighted by total operation surplus per type of crops

Table A3.8:

Water losses (NRW), "Aspiration" scenarios

Scenario (a), CS

Scenario (b), OE

MCM/year

MCM/year

year Type of losses administrative (min‐max)

2010

2015

2020

2025

2010

2015

2020

2025

52

60

68

76

52

50

56

62

(47‐55)

(54‐65)

(62‐76)

(68‐88)

(47‐55)

(45‐54)

(50‐62)

(56‐71)

physical

74

77

79

78

74

49

36

24

(min‐max)

(67‐79)

(69‐83)

(71‐88)

(70‐90)

(67‐79)

(44‐53)

(32‐40)

(22‐28)

Million JD/year

Value of physical losses in JD1 (min‐max) 1

Million JD/year

41.9

43.3

44.5

44.2

41.9

27.5

20.2

13.8

(37.8‐44.7)

(39.1‐46.8)

(40.1‐49.5)

(39.4‐50.7)

(37.8‐44.7)

(24.9‐29.8)

(18.2‐22.4)

(12.3‐15.8)

based on the current average value of 0.59 JD/m³ for water use in the agricultural sector

54


Table 3.9: Development of water demand, "Trend" scenarios 1

year

Scenario (a), UBS‐norm 2010

Scenario(b), UBS‐GC

MCM/year 2015 2020

2025

2010

MCM/year 2015 2020

2025

1

Water Demand 1 Municipal 258 320 379 433 258 257 289 (min‐max) (258‐258) (319‐325) (377‐396) (426‐466) (258‐258) (256‐261) (287‐302) 2 Industry 52 78 91 100 52 78 91 (min‐max) (52‐52) (73‐83) (82‐102) (89‐113) (52‐52) (73‐83) (82‐102) 3 Tourism 6 10 18 19 6 10 18 (min‐max) (6‐6) (8‐12) (11‐27) (11‐29) (6‐6) (8‐12) (11‐27) 4 Nuclear Reactors Freshwater 20 70 20 TWW² 30 30 30 5 Total (sum 1‐4) 315 407 538 652 315 345 449 (min‐max) (315‐316) (400‐419) (520‐574) (626‐709) (315‐316) (337‐356) (430‐481) 7 Resources³(without 775 863 1069 1214 775 863 1069 TWW) 1 Remaining Water Resources 8 Freshwater 460 456 561 592 460 518 650 (min‐max) (460‐460) (444‐463) (525‐579) (536‐618) (460‐460) (507‐526) (618‐669) 9 TWW² 132 165 169 196 132 133 124 (min‐max) (132‐132) (163‐168) (164‐181) (189‐218) (132‐132) (132‐137) (119‐135) 10 Total 592 620 729 788 592 651 774 (min‐max) (592‐592) (612‐627) (706‐743) (753‐807) (592‐592) (643‐658) (753‐788) 11 For comparison: 117 165 223 247 117 165 223 planned TWW by MWI³ 12 Freshwater savings 0 62 90 (min‐max) 0 (62‐63) (90‐94) 1 2 Figures represent the situation under a medium demographic and economic development, TWW = treated wastewater ³ planned by MWI

Table 3.10:

Valuation of water use (except nuclear energy), "Trend" scenarios

Value

year Municipal (min‐max) Industry (min‐max)

JD/m³

Table 3.11:

Water losses (NRW) ), "Trend" scenarios

1

Scenario (a), UBS‐norm

324 (319‐350) 100 (89‐113) 19 (11‐29) 70 30 543 (519‐592) 1214

701 (653‐726) 141 (135‐159) 842 (812‐861) 247 109 (107‐117)

Scenario (b), UBS‐GC

Million JD/year Million JD/year 2010 2015 2020 2025 2010 2015 2020 2025 1.49² 384 476 564 645 384 383 431 483 (384‐384) (475‐484) (561‐590) (635‐695) (384‐384) (382‐389) (428‐451) (475‐521) 77.63³ 4,022 6,055 7,097 7,796 4,022 6,055 7,097 7,796 (4,022‐ (5,659‐ (6,352‐ (6,875‐ (4,022‐ (5,659‐ (6,352‐ (6,875‐ 4,022) 6,451) 8,808) 8,808) 4,022) 6,451) 8,808) 8,808) 4 Tourism 107.00 166 274 509 532 166 274 509 532 (min‐max) (166‐166) (220‐328) (313‐752) (321‐802) (166‐166) (220‐328) (313‐752) (321‐802) 5 Agriculture 0.59 333 350 411 444 333 367 436 475 (min‐max) (333‐333) (345‐353) (398‐419) (424‐455) (333‐333) (363‐371) (424‐444) (457‐485) Total 4,905 7,155 8,581 9,417 4,905 7,079 8,473 9,286 (min‐max) (4,905‐ (6,707‐ (7,645‐ (8,285‐ (4,905‐ (6,632‐ (7,537‐ (8,156‐ 4,905) 7,607) 9,628) 10,730) 4,905) 7,531) 9,515) 10,589) 1 2 average values per sector, cf, water valuation report, July 2011, value based on total costs of public network and opportunity costs 4 ³ operation surplus according to UNSNA definitions per m³ in 2008, net value added per m³ in hotels and restaurants 5 operation surplus according to UNSNA definitions per m³ in 2008, weighted by total operation surplus per type of crops

year Type of losses administrative (min‐max) physical (min‐max) 1 Value of physical losses in JD (min‐max)

Scenario (a) UBS‐norm 2010 32 (32‐32) 45 (45‐45)

MCM/year 2015 2020

Scenario (b) UBS GC 2025

2010

41 50 58 32 (41‐42) (49‐52) (57‐63) (32‐32) 52 57 60 45 (52‐53) (57‐60) (59‐64) (45‐45) Million JD/year 25.7 29.3 32.4 33.8 25.7 (25.7‐ (29.3‐ (32.2‐ (33.3‐ (25.7‐ 25.7) 29.8) 33.9) 36.4) 25.7) 1 based on the current average value of 0.59 JD/m³ for water use in the agricultural sector

MCM/year 2015 2020 34 41 (34‐35) (41‐43) 33 27 (33‐34) (27‐28) Million JD/year 18.9 15.2 (18.9‐ (15.1‐ 19.2) 15.9)

55

2025 48 (47‐52) 20 (19‐21) 11.1 (11.0‐ 12.0)


Table A3.12:

year

Development of water demand, ), "Inter‐sectoral allocation" scenario1 Scenario Trend (a),UBS‐norm MCM/year 2015 2020

2010

Scenario Inter‐sectoral allocation, IAA‐UBS 2025

2010

1

Water Demand 1 Municipal 258 320 379 433 258 (min‐max) (258‐258) (319‐325) (377‐396) (426‐466) (258‐258) 2 Industry 52 78 91 100 52 (min‐max) (52‐52) (73‐83) (82‐102) (89‐113) (52‐52) 3 Tourism 6 10 18 19 6 (min‐max) (6‐6) (8‐12) (11‐27) (11‐29) (6‐6) 4 Nuclear Reactors Freshwater 20 70 TWW² 30 30 5 Total (sum 1‐4) 315 407 538 652 315 (min‐max) (315‐316) (400‐419) (520‐574) (626‐709) (315‐316) 7 Resources³(without 775 863 1069 1214 775 TWW) 1 Remaining Water Resources 8 Freshwater 460 456 561 592 460 (min‐max) (460‐460) (444‐463) (525‐579) (536‐618) (460‐460) 9 TWW² 132 165 169 196 132 (min‐max) (132‐132) (163‐168) (164‐181) (189‐218) (132‐132) 10 Total 592 620 729 788 592 (min‐max) (592‐592) (612‐627) (706‐743) (753‐807) (592‐592) 11 For comparison: 117 165 223 247 117 planned TWW by MWI³ 1 Figures represent the situation under a medium demographic and economic development 2 TWW = treated wastewater ³ planned by MWI

MCM/year 2015 2020 385 (384‐390) 78 (73‐83) 10 (8‐12)

2025

472 (465‐485) 863

527 (525‐550) 91 (82‐102) 18 (11‐27) 20 30 687 (668‐729) 1069

70 30 792 (765‐859) 1214

391 (378‐398) 197 (196‐201) 588 (594‐579) 165

412 (370‐431) 243 (238‐258) 655 (629‐669) 223

452 (385‐480) 266 (258‐293) 718 (678‐738) 247

573 (565‐617) 100 (89‐113) 19 (11‐29)

Table A3.13:

Valuation of water use (except nuclear energy), "Inter‐sectoral allocation" scenario

Value

JD/m³

1

Scenario Trend (a),UBS‐norm

Scenario Inter‐sectoral allocation, IAA‐UBS

Million JD/year

year

2010

2015

2020

Million JD/year 2025

2010

2015

2020

2025

Municipal

1.49²

384

476

564

645

384

573

785

854

(min‐max)

(384‐384)

(475‐484)

(561‐590)

(635‐695)

(384‐384)

(572‐582)

(782‐820)

(841‐920)

Industry

77.63³

4,022

6,055

7,097

7,796

4,022

6,055

7,097

7,796

107.00

(4,022‐ 4,022) 166

(5,659‐ 6,451) 274

(6,352‐ 8,808) 509

(6,875‐ 8,808) 532

(4,022‐ 4,022) 166

(5,659‐ 6,451) 274

(6,352‐ 8,808) 509

(6,875‐ 8,808) 532

(min‐max) Tourism

4

(min‐max)

(166‐166)

(220‐328)

(313‐752)

(321‐802)

(166‐166)

(220‐328)

(313‐752)

(321‐802)

0.59

333

350

411

444

333

331

369

405

(min‐max)

(333‐333)

(345‐353)

(398‐419)

(424‐455)

(333‐333)

(335‐326)

(354‐377)

(382‐416)

Total

4,905

7,155

8,581

9,417

4,905

7,233

8,760

9,587

(min‐max)

(4,905‐ (6,707‐ (7,645‐ (8,285‐ (4,905‐ (6,786‐ (7,824‐ 4,905) 7,607) 9,628) 10,730) 4,905) 7,687) ( 9,814) 1 average values per sector, cf, water valuation report, July 2011 2 value based on total costs of public network and opportunity costs ³ operation surplus according to UNSNA definitions per m³ in 2008 4 net value added per m³ in hotels and restaurants 5 operation surplus according to UNSNA definitions per m³ in 2008, weighted by total operation surplus per type of crops

(8,453‐ 10,912)

Agriculture

5

56


Table A3.14:

Water losses (NRW), "Inter‐sectoral allocation" scenario

Scenario UBS‐norm

MCM/year

year

2010

Type of losses

2015

administrative (min‐max) physical (min‐max)

Scenario IAA‐UBS MCM/year

2020

2025

2010

2015

2025

32

41

50

58

32

49

68

76

(32‐32)

(41‐42)

(49‐52)

(57‐63)

(32‐32)

(49‐50)

(68‐71)

(75‐81)

45

52

57

60

45

62

79

78

(45‐45)

(52‐53)

(57‐60)

(59‐64)

(45‐45)

(62‐63)

(78‐82)

(77‐84)

Million JD/year

Value of physical 1 losses in JD (min‐max)

2020

Million JD/year

25.7

29.3

32.4

33.8

25.7

35.1

44.5

44.2

(25.7‐25.7)

(29.3‐29.8)

(32.2‐33.9)

(33.3‐36.4)

(25.7‐25.7)

(35.0‐35.6)

(44.3‐46.5)

(43.5‐47.6)

1

based on the current average value of 0.56 JD/m³ for water use in the agricultural sector

Table A3.15: Potential availability of water for agriculture under the different scenario assumptions Year Scenario Aspiration (a), CS (min‐max) Aspiration (b), OE (min‐max) Trend (a), UBS‐norm (min‐max) Trend (b), UBS‐GC (min‐max) Intersectoral allocation, IAA‐UBS (min‐max) Min (min) Max (max) average

2010

2015

2020

2025

MCM/year

494 (480‐514) 494 (480‐515) 592 (592‐592) 592 (592‐592) 592 (592‐592)

524 (490‐559) 573 (543‐606)

636 (594‐662) 701 (667‐732)

620 (612‐627) 651 (643‐658) 588 (594‐579)

729 (706‐743) 774 (753‐788) 655 (629‐669)

696 (644‐713) 771 (729‐803) 788 (753‐807) 842 (812‐861) 718 (678‐738)

494 (480) 592 (592) 552,8

524 (490) 651 (658) 591,2

639 (594) 774 (778) 699

696 (644) 842 (861) 763

57


TableA3.16: Estimated crop water requirements and calculated amounts of treated wastewater from all scenarios year

2010

2015

1

2020

1

CWR

1

TWW CWR TWW CWR TWW Average Average Average (min‐max) (min‐max) (min‐max) Governorate MCM/year MCM/year MCM/year Ajloun 12,2 3,1 11,1 3,4 10,0 3,8 (1.9‐4.3) (1.9‐4.9) (2.1‐5.5) Amman 73,8 75,7 73,3 82,5 72,1 92,7 (55.4‐95.9) (54.5‐110.6) (59.9‐125.5) Aqaba 31,1 10,6 30,4 15,2 29,8 20,2 (8.6‐12.6) (10.3‐20.1) (13.2‐27.3) Balqa 289,1 11,2 275,8 12,0 251,2 13,5 (7.8‐14.5) (7.8‐16.3) (8.7‐18.3) Irbid 141,5 26,5 135,6 28,9 122,8 32,8 (18.7‐34.3) (18.6‐39.1) (21.2‐44.4) Jarash 30,7 4,6 29,4 5,1 26,8 5,8 (3.2‐6.0) (3.4‐6.9) (3.8‐7.8) Karak 69 6,2 67,3 6,7 63,9 7,5 (4.4‐8.1) (4.3‐9.1) (4.8‐10.2) Madaba 5,6 4,1 5,5 4,4 5,4 5,0 (2.9‐5.3) (2.9‐6.0) (3.2‐6.7) Mafraq 162,3 8,1 161,3 8,7 159,6 9,7 (6.5‐9.7) (6.5‐10.9) (7.3‐12.2) Ma’an 106,7 3,1 101,2 3,3 98,2 3,7 (2.2‐4.0) (2.1‐4.5) (2.4‐5.0) Tafilah 23,4 2,3 22,5 2,5 21,0 2,8 (1.6‐3.0) (1.6‐3.3) (1.8‐3.8) Zarqa 130,1 26,4 126,1 28,4 122,1 31,8 (18.5‐34.2) (18.3‐38.5) (20.5‐43.2) Jordan 1075,5 181,8 1039,5 201,1 982,9 229,3 (131.8‐231.7) (132.1‐270.0) (148.8‐309.8) 1 crop water requirement according to NWMP, cf. diagnostic report, table 12 2 TWW = treated wastewater based on a recycling rate of 50% of water for municipal and touristic purposes

Table A3.17: Difference between estimated agricultural water demand and water availability for agriculture under different scenario assumptions in MCM/year Year Estimated agricultural water 1 demand Scenario² Aspiration (a), CS Aspiration (b), OE Trend (a), UBS‐norm Trend (b), UBS‐GC Intersectoral Allocation, IAA‐UBS

2010

2015

2020

2025

1072,3

1039,7

982,7

1000

578,3 578,3 480,3 480,3 529,3

515,7 466,7 419,7 388,7 447,7

346,7 281,7 253,7 208,7 272,7

304 229 212 158 225,75

Average Difference 529,3 447,7 272,7 225,75 Maximal Difference 578,3 515,7 343,7 304 Minimal Maximal Difference³ 480,3 388,7 208,7 158 1 2010‐2020 according to NWMP, 2025 according to Jordan’s water strategy for the year 2022 cf. diagnostic report, table 12 2 Figures under the assumption of medium developments of the drivers demographic and economic growth

58


Appendix 4: Water Values The value of water is a comparative criterion and varies with the intended analysis of the valuation. The water valuation in the present Water Demand Management Study focuses on the comparison between benefits from and costs for water. Such an analysis would require marginal values in the ideal case, i.e. the costs and values of the last m³ used for a specific purpose. However, current data allow for a valuation on the basis of average values only. The use of these values for other analyses should thus be treated with caution. The value of water for municipal water users depends on the current costs for water provision and the opportunity costs of a potential use of this water by another client. This implies for the comparison with other sectors that an increase in water costs increases the value of municipal water value, but decreases the net value of water in other sectors. Current water values range from 1.36 JD/m³ in Amman to 1.61 JD/m³ in the northern regions with a nationwide average of 1.49 JD/m³. Table A4.1: Domestic water value calculations Amman Residential water bill revenues (Million JD) Residential billed water (MCM) Average water price for residential users (JD/m3) Non‐residential water price (JD/m3) Opportunity Cost (JD/m3) Total cost (JD/m3 billed) Water value (JD/m3)

North region

Aqaba

Rest of Jordan

Total (Jordan)

38.61 75.35

9.26 32.74

1.26 3.31

11.33 40.08

60.47 151.49

0.51 1 0.49 0.87 1.36

0.28 1 0.72 0.89 1.61

0.38 1 0.62 0.80 1.42

0.28 1 0.72 1.20 1.91

0.40 1 0.60 0.89 1.49

Source: Based on revenue data 2004 for Aqaba and of 2008 for other regions.

The operation surplus (OS) of Jordan’s industries, i.e. the approximate pre‐tax profit income8, amounted to about 2.48 billion JD in 2008, which corresponded to a related water productivity of about 55 JD/m³. This was well below the 6‐year average of about 78 JD/m³.

8

The operation surplus represents the difference between the gross value added including producer subsidies minus (1) the consumption of fixed capital, (2) compensation for employees and (3) indirect taxes (definition according to the United Nations System of National Accounts, UNSNA) 59


Water values vary highly between industries and are naturally lowest in sectors with high water demands. Industrial sectors with the lowest profits per m³ in the inflation‐adjusted 6‐year average were mining and quarrying, chemicals and food products, which are simultaneously the largest industrial water consumers. Their weighted OS amounted from 38 up to 46 JD/m³. Sectors on the upper end of profits per m³ include oil, gas, coke and petroleum products with 680 up to more than 5.574 JD/m³, but consume less than 2% of the total water for industries.

Table A4.22: Water Values in Jordan’s industrial sector, unweighted averages (2003‐2008) Water Consumption M3

Economic Activity Ext. Petroleum and natural gas Mining and quarrying Man. of food & beverages Man. tobacco products Man. textiles Man. wearing apparel Tanning of leather Man. Wood & Cork products Man. Paper & Paper products Publishing & printing Man. Coke & refined petroleum Man. Chemicals Man. Rubber & Plastics Man. non‐metallic mineral Man. basic metals Man. fabricated metal products Man. machinery and equipment Man. electrical machinery Man. Medical optical instruments Man. motor vehicles Man. transport equipment Man. Furniture Electricity, gas, & Steam Total industry

2,680 8,004,420 3,671,000 106,620 113,720 599,420 44,420 58,120 412,760 229,360 801,040 6,692,400 292,380 3,656,340 775,140 355,560 140,120 126,340 115,020 40,260 4,460 212,840 1,169,620 27,624,040

Gross Operation Gross value Output per surplus Per added Per M3 M3 M3 4,643 59 254 2,402 523 504 518 598 339 595 3,121 121 533 146 413 658 784 1,738 260 1,084 913 653 298 283

4,386 34 71 1,517 228 278 176 219 114 295 298 41 176 71 143 247 272 437 109 369 517 270 123 86

60

3,408 17 26 71 111 200 71 121 40 102 388 21 70 32 67 137 122 211 33 160 312 130 25 45


A complete separation of water demands by tourism from transport and commercial services for the local population is difficult. Hotels and restaurants consumed about 7.8 MCM in 2007, which corresponded to an OS of about 38 JD/m³. Water values in other sectors where distinctly higher and ranged from 66 JD/m3 in food and beverages sales up to 303 JD/m3 for the repair of personnel and household equipment.

Table A4.3: Water Values in Tourism and Services sector, averages (2003‐2008) ISIC‐ Code

Economic Activity

55 522 50 523 524 526 521 51 525

Hotels and restaurants Retail sale of food & beverage Sale, maintenance of vehicles Other retail trade Retail sale of second‐hand Repair of personal &household Non‐specialized retail trade Wholesale trade Retail trade not in stores Total Services

Water Consumption m3

Gross Output per m3

Gross value added Per m3

Net Value Added Per m3

Operation surplus Per m3

4,773,080 901,360 1,883,480 925,620 34,760 28,140 386,460 739,700 4,980 9,677,580

74 99 138 317 382 424 435 671 3,349 176

38 66 107 219 259 303 320 535 2,302 123

28 63 103 202 230 272 255 471 329 107

7 45 55 110 168 237 185 138 1,650 49

Table A4.4: Water Values in other sectors, averages (2003‐2008) ISIC‐ Code 45 60 61 62 63 64 65 66 67 70 71 72 74 80 85 85 91 92 92 93

Economic Activity

Total: Construction‐Contractors Land transport; transport Water transport Air transport Supporting and auxiliary activities Post and telecommunications financial intermediation Total Insurance Administration of financial markets Real estate activities Renting of mach.& equipment Computer & related activities Other business activities Education Health activities Non‐profit : Social work activities Non‐profit : membership org. Recreational, cultural & sporting Non‐profit : Sporting activities Other service activities Total

Water Consumption m3 2,668,560 199,900 46,320 85,820 2,407,440 258,500 383,680 77,300 46,140 308,220 50,940 50,600 348,360 1,122,920 1,199,200 147,320 633,500 394,900 154,260 610,540 11,194,420

Net Gross Gross Value value Output added Per Added per m3 Per m3 m3 303 73 65 3,516 2,232 1,871 1,718 762 352 5,270 1,278 1,030 153 106 98 3,306 2,298 1,799 1,509 1,171 1,105 792 461 434 1,522 1,293 1,226 121 91 74 339 216 138 574 390 258 461 313 294 243 186 165 164 93 75 142 84 59 143 80 58 123 62 33 57 26 19 77 49 47 438 249 212

61

Operation surplus Per m3 24 1,514 502 318 63 977 582 140 970 49 52 155 114 40 27 0 0 ‐10 0 31 112


Proportional variations in values of water for agricultural production are on a similar scale as for water in industry, but considerable lower in absolute terms. The OS in crop production ranged from 0.011 JD/m³ for some millet varieties up to nearly 4 JD/m³ for cucumbers in 2008. Average, weighted OS per group of crops amounted to 0.288 JD/m³ for field crops, 0.789 JD/m³ for vegetables and 0.149 JD/m³ for fruit trees under the cropping pattern in 2008. The overall average OS in crop production amounted to 0.563 JD/m³ in 2008. However, these values are subject to changes between the years due to the variations in prices for agricultural products as well as in cropping patterns. Livestock husbandry consumes less than 2% of the water for agricultural purposes but yields much higher returns per m³. However, accessible data allowed for the calculation of the Gross Value Added only, which ranged in 2009 from about 9 JD/m³ for laying hens up to 56 JD/m³ in hatcheries. The average Gross Value Added in Livestock production amounted to 18.06 JD/m³ in the year of reference.

Table A4. 3: Water Values and gross margin per unit area for selected crops irrigated with the blended and fresh water.

Cultivation Crop method Cucumber Plastic house Tomato Plastic house Cabbage Open field Potato Open field Sweet pepper Open field Hot pepper Open field Squash Open field Bean Plastic house Eggplant Plastic house Eggplant Open field Average Tomato Sweet pepper Hot Pepper Onion Potato Beans Average

CWR m3/du 336 344 197 384 924 462 197 241 1000 500

Open field Open field Plastic house Open field Open field Open field

398 536 1072 471 350 213

Autumn Season Fresh water (KAC) Blended Treated WW (KTD) Yield GM Profit Yield GM Profit JD/du (JD/m3) kg/du JD/du (JD/m3) kg/du 9,871 470.7 1.401 8,581 439.4 1.308 10,500 783.0 2.276 8,647 462.6 1.345 3,800 97.9 0.497 3,000 100.3 0.509 3,400 201.6 0.525 2,500 137.9 0.359 5,600 288.7 0.312 3,599 223.3 0.242 2,200 107.9 0.234 2,342 59.0 0.128 3,000 227.7 1.156 3,245 166.8 0.847 2,950 976.1 4.050 860 129.8 0.539 10,901 294.8 0.295 7,500 203.0 0.203 5,051 105.1 0.210 4,053 70.3 0.141 355.3 1.096 199.2 0.562 Spring Season 7,950 574.2 1.443 5,300 313.2 0.787 3,000 174.3 0.325 1,680 97.6 0.182 4,400 448.1 0.418 4,400 406.0 0.379 3,000 343.7 0.730 2,500 185.6 0.394 5,000 719.2 2.055 4,500 546.7 1.562 1,300 556.8 2.614 784 146.5 0.688 469.4 1.264 282.6 0.665

Source: Estimated from primary data collected by ATEEC

62


Table A4.6: Computed water values (JD/m3) for Field Crops in 2008 No.

Crops

1 2 3 4 5 6 7 8 9 10 11 12 13 14

Wheat Barley Lentils Vetch Chick‐peas Maize Sorghum Broom millet Tobacco Garlic Sesame Clover Alfalfa Others FC Field Crops

Gross Output (JD/ M3)

Value Added (JD/M3)

Operation Surplus (JD/M3)

0.261 0.232 0.105 0.120 0.254 0.593 0.282 0.033 0.061 5.928 0.079 0.851 0.006 0.005 0.661

0.183 0.167 0.063 0.072 0.152 0.284 0.147 0.018 0.034 3.438 0.040 0.596 0.004 0.003 0.441

0.130 0.126 0.035 0.040 0.084 0.166 0.090 0.011 0.017 2.015 0.021 0.392 0.003 0.001 0.288

Table A4.7: Computed water values (JD/m3) for vegetables in 2008 No.

Crops

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27

Tomatoes Squash Eggplants Cucumber Potato Cabbage Cauliflower Hot pepper Sweet pepper Broad beans String beans Peas Cow‐peas Jew's mallow Okra Lettuce Sweet melon Water melon Spinach Onion green Onion dry Snake cucumber Turnip Carrot Parsley Radish Others Veg Vegetables

Gross Output (JD/ M3)

Gross Value added (JD/M3)

Operation Surplus (JD/M3)

1.660 1.330 1.675 8.650 1.851 1.670 1.697 0.590 3.983 1.659 3.429 1.885 2.548 1.745 2.684 1.662 2.675 2.892 1.303 1.420 1.225 1.248 1.641 2.040 1.860 1.015 0.303 1.921

1.171 0.678 1.052 6.055 0.981 1.052 1.069 0.386 2.549 1.079 2.639 1.225 1.631 0.994 1.756 1.088 1.352 1.648 0.853 0.824 0.686 0.817 1.074 1.335 1.217 0.664 0.199 1.233

0.768 0.452 0.625 3.957 0.555 0.752 0.764 0.248 1.368 0.846 2.241 0.961 1.249 0.768 1.013 0.790 0.726 0.867 0.541 0.540 0.380 0.471 0.620 0.770 0.702 0.383 0.115 0.789

63


Table A4.8: Computed water values (JD/m3) for Fruit Trees in 2008 No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26

Crops Lemons Oranges, local Oranges, navel Oranges, red Oranges, Valencia Oranges, French Oranges, Shamouti Clementine Mandarins Grapefruits Medn. mandarins Pummelors Olives Grapes Figs Almonds Peaches Plums, prunes Apricots Apples Pomegranates Pears Guava Dates Bananas Others FT

Fruit trees

Gross Output (JD/ M3) 0.483 0.526 0.480 0.703 0.574 0.579 0.856 0.286 0.119 0.307 0.910 0.410 0.115 0.562 0.193 0.463 0.526 0.462 0.834 0.657 0.936 0.335 0.485 0.280 0.987 0.142

Gross Value added (JD/M3) 0.295 0.357 0.326 0.478 0.390 0.393 0.582 0.195 0.069 0.184 0.546 0.246 0.069 0.276 0.135 0.310 0.337 0.208 0.534 0.506 0.477 0.214 0.310 0.218 0.790 0.085

Operation Surplus (JD/M3) 0.188 0.231 0.211 0.309 0.253 0.255 0.377 0.126 0.043 0.117 0.346 0.156 0.044 0.202 0.108 0.245 0.221 0.092 0.350 0.368 0.356 0.141 0.204 0.148 0.513 0.054

0.338

0.226

0.149

Table A4.9: Computed water values (JD/m3) for Livestock sub‐sector in 2009

Sheep & Goat Cattle Broilers Layers Parent Stock Hatchery Livestock

Gross Output 270.49 104.47 241.14 65.80 45.62 43.15 770.66

Intermediate Consumption 158.16 89.46 220.44 59.94 36.20 32.26 596.49

Value Added 112.32 15.02 20.70 5.85 9.41 10.89 174.17

Water Consumption 5.21 1.46 1.42 0.65 0.71 0.19 9.65

Gross Output Per M3 51.95 71.41 170.04 101.32 63.89 221.91 79.89

Value Added M3 21.57 10.26 14.59 9.01 13.18 56.00 18.06

64

% Cost of Water 2.47 1.23 0.48 0.81 1.48 0.45 1.21


Appendix 5: Cost Benefit Analyses of WDM measures Table A5.1: WDM municipal water, program "Green Code", "Awareness Programme" & "Institutions and Policies" Year

Investment Cost

unit

Total

O&M costs

Total Cost

Accum. Costs

Designed Capacity

Water value

Cash flow

discounted costs

discounted value

discounted cash flow

accum. discounted costs JD

accum. discounted cash flow JD

discounted costs/m³ JD

discounted cash flow/m3 JD

JD

JD

JD

JD

MCM

JD

JD

JD

JD

JD

0

44.051.217

1.644.769

45.695.986

45.695.986

2.000.000

1.020.000

‐44.675.986

45.695.986

1.020.000

‐44.675.986

45.695.986

‐44.675.986

22.85

‐22.34

1

44.051.217

3.006.205

47.057.422

92.753.408

10.500.000

5.355.000

‐41.702.422

44.393.794

5.051.887

‐39.341.907

90.089.780

‐84.017.893

7,21

‐6,72

2

44.051.217

4.537.641

48.588.858

141.342.265

12.750.000

6.502.500

‐42.086.358

43.243.910

5.787.202

‐37.456.708

133.333.690

‐121.474.601

5,28

‐4,81

3

31.000.000

5.037.641

36.037.641

177.379.906

15.375.000

7.841.250

‐28.196.391

30.257.898

6.583.665

‐23.674.233

163.591.588

‐145.148.835

4,03

‐3,57

4

0

5.537.641

5.537.641

182.917.547

18.562.500

9.466.875

3.929.234

4.386.330

7.498.652

3.112.321

167.977.918

‐142.036.513

2,84

‐2,40

5

0

6.037.641

6.037.641

188.955.188

20.568.750

10.490.063

4.452.422

4.511.676

7.838.785

3.327.108

172.489.595

‐138.709.405

2,16

‐1,74

6

0

6.537.641

6.537.641

195.492.828

22.625.625

11.539.069

5.001.428

4.608.779

8.134.588

3.525.809

177.098.374

‐135.183.596

1,73

‐1,32

7

0

6.537.641

6.537.641

202.030.469

24.738.188

12.616.476

6.078.835

4.347.905

8.390.677

4.042.772

181.446.278

‐131.140.823

1,43

‐1,03

8

0

6.537.641

6.537.641

208.568.110

26.662.006

13.597.623

7.059.982

4.101.797

8.531.317

4.429.520

185.548.075

‐126.711.303

1,21

‐0,82

9

0

6.537.641

6.537.641

215.105.751

28.653.207

14.613.136

8.075.495

3.869.620

8.649.492

4.779.873

189.417.695

‐121.931.430

1,04

‐0,67

10

0

6.537.641

6.537.641

221.643.392

30.718.528

15.666.449

9.128.808

3.650.584

8.748.063

5.097.479

193.068.279

‐116.833.951

0,91

‐0,55

11

0

6.537.641

6.537.641

228.181.033

32.865.380

16.761.344

10.223.703

3.443.948

8.829.667

5.385.719

196.512.227

‐111.448.232

0,80

‐0,45

12

0

6.537.641

6.537.641

234.718.673

34.608.649

17.650.411

11.112.770

3.249.007

8.771.714

5.522.706

199.761.234

‐105.925.526

0,71

‐0,38

13

0

6.537.641

6.537.641

241.256.314

36.376.582

18.552.057

12.014.416

3.065.101

8.697.928

5.632.827

202.826.335

‐100.292.699

0,64

‐0,32

14

0

6.537.641

6.537.641

247.793.955

38.170.411

19.466.910

12.929.269

2.891.605

8.610.233

5.718.628

205.717.940

‐94.574.071

0,58

‐0,27

15

0

6.537.641

6.537.641

254.331.596

39.991.431

20.395.630

13.857.989

2.727.929

8.510.384

5.782.455

208.445.869

‐88.791.616

0,53

‐0,22

16

0

6.537.641

6.537.641

260.869.237

41.841.003

21.338.912

14.801.271

2.573.518

8.399.983

5.826.465

211.019.387

‐82.965.151

0,48

‐0,19

17

0

6.537.641

6.537.641

267.406.878

43.720.553

22.297.482

15.759.841

2.427.847

8.280.491

5.852.644

213.447.234

‐77.112.506

0,44

‐0,16

18

0

6.537.641

6.537.641

273.944.518

45.631.581

23.272.106

16.734.465

2.290.422

8.153.238

5.862.816

215.737.656

‐71.249.690

0,41

‐0,14

19

0

6.537.641

6.537.641

280.482.159

47.575.660

24.263.587

17.725.946

2.160.775

8.019.431

5.858.656

217.898.431

‐65.391.035

0,38

‐0,11

20

0

6.537.641

6.537.641

287.019.800

49.554.443

25.272.766

18.735.125

2.038.467

7.880.168

5.841.701

219.936.899

‐59.549.334

0,35

‐0,10

163.153.650

NPV =

Interest rate: 6%, current costs of water supply: 0.51 JD/m³

65

‐59.549.334


Table A5.2: WDM municipal water, program "reduction of physical NRW" Year

Investment Cost

unit

Total

O&M costs

JD

Total Cost

JD

Accum. Costs

Designed Capacity MCM

Water value

Cash flow

JD

discounted costs

discounted value

discounted cash flow

JD

accum. discounted costs

accum. discounted cash flow

discounted costs/m³

discounted cash flow/m3

JD

JD

JD

JD

JD

JD

JD

0

129.388.500

2.000.000

131.388.500

131.388.500

0

0

‐131.388.500

131.388.500

0

‐131.388.500

131.388.500

‐131.388.500

JD ‐

JD ‐

1

129.388.500

3.000.000

132.388.500

263.777.000

5.000.000

2.550.000

‐129.838.500

124.894.811

2.405.660

‐122.489.151

256.283.311

‐253.877.651

51,26

‐50,78

2

129.388.500

4.000.000

133.388.500

397.165.500

10.000.000

5.100.000

‐128.288.500

118.715.290

4.538.982

‐114.176.308

374.998.601

‐368.053.959

25,00

‐24,54

3

129.388.500

5.000.000

134.388.500

531.554.000

15.000.000

7.650.000

‐126.738.500

112.835.176

6.423.088

‐106.412.089

487.833.777

‐474.466.048

16,26

‐15,82

4

0

6.000.000

6.000.000

537.554.000

18.000.000

9.180.000

3.180.000

4.752.562

7.271.420

2.518.858

492.586.339

‐471.947.190

10,26

‐9,83

5

0

7.000.000

7.000.000

544.554.000

21.000.000

10.710.000

3.710.000

5.230.807

8.003.135

2.772.328

497.817.147

‐469.174.862

7,21

‐6,80

6

0

8.000.000

8.000.000

552.554.000

24.000.000

12.240.000

4.240.000

5.639.684

8.628.717

2.989.033

503.456.831

‐466.185.829

5,41

‐5,01

7

0

9.000.000

9.000.000

561.554.000

25.000.000

12.750.000

3.750.000

5.985.514

8.479.478

2.493.964

509.442.345

‐463.691.865

4,32

‐3,93

8

0

9.500.000

9.500.000

571.054.000

26.000.000

13.260.000

3.760.000

5.960.418

8.319.488

2.359.071

515.402.763

‐461.332.795

3,58

‐3,20

9

0

10.000.000

10.000.000

581.054.000

27.000.000

13.770.000

3.770.000

5.918.985

8.150.442

2.231.457

521.321.747

‐459.101.337

3,05

‐2,68

10

0

10.500.000

10.500.000

591.554.000

28.000.000

14.280.000

3.780.000

5.863.145

7.973.877

2.110.732

527.184.892

‐456.990.605

2,65

‐2,30

11

0

11.000.000

11.000.000

602.554.000

29.000.000

14.790.000

3.790.000

5.794.663

7.791.188

1.996.525

532.979.555

‐454.994.081

2,34

‐2,00

12

0

11.500.000

11.500.000

614.054.000

30.000.000

15.300.000

3.800.000

5.715.148

7.603.631

1.888.484

538.694.703

‐453.105.597

2,09

‐1,76

13

0

12.000.000

12.000.000

626.054.000

31.000.000

15.810.000

3.810.000

5.626.068

7.412.345

1.786.277

544.320.771

‐451.319.320

1,88

‐1,56

14

0

12.500.000

12.500.000

638.554.000

32.000.000

16.320.000

3.820.000

5.528.762

7.218.352

1.689.590

549.849.533

‐449.629.731

1,71

‐1,40

15

0

13.000.000

13.000.000

651.554.000

33.000.000

16.830.000

3.830.000

5.424.446

7.022.571

1.598.125

555.273.979

‐448.031.605

1,57

‐1,27

16

0

13.500.000

13.500.000

665.054.000

34.000.000

17.340.000

3.840.000

5.314.225

6.825.827

1.511.602

560.588.204

‐446.520.004

1,44

‐1,15

17

0

14.000.000

14.000.000

679.054.000

35.000.000

17.850.000

3.850.000

5.199.102

6.628.855

1.429.753

565.787.306

‐445.090.251

1,34

‐1,05

18

0

14.500.000

14.500.000

693.554.000

36.000.000

18.360.000

3.860.000

5.079.985

6.432.312

1.352.327

570.867.291

‐443.737.924

1,24

‐0,97

19

0

15.000.000

15.000.000

708.554.000

37.000.000

18.870.000

3.870.000

4.957.695

6.236.781

1.279.085

575.824.986

‐442.458.838

1,16

‐0,89

20

0

15.500.000

15.500.000

724.054.000

38.000.000

19.380.000

3.880.000

4.832.973

6.042.776

1.209.802

580.657.959

‐441.249.036

1,09

‐0,83

517.554.000

NPV=

Interest rate: 6%, current costs of water supply: 0.51 JD/m³

66

‐441.249.036


Table A5.3a: WDM irrigation water, program "increased irrigation efficiency" & "extension and improved efficiency of treated wastewater use" Value of water for agriculture: 0.563 JD/m³, rate of interest: 6% Year

Investment Cost

unit

Total

JD

O&M costs

JD

0

36.638.761

Total Cost

JD 550.000

37.188.761

Accum. Costs

JD 37.188.761

Designed Capacity

MCM

Water value

JD 0

0

Cash flow

discounted costs

discounted value

accum. discounted benefits

discounted cash flow

accum. discounted costs

accum. discounted cash flow

JD

JD

JD

JD

JD

JD

JD

‐37.188.761

37.188.761

0

0

‐37.188.761

37.188.761

‐37.188.761

1

36.638.761

725.000

37.363.761

74.552.522

9.500.000

5.348.500

‐32.015.261

35.248.831

5.045.755

5.045.755

‐30.203.076

72.437.592

‐67.391.837

2

36.638.761

931.250

37.570.011

112.122.533

13.250.000

7.459.750

‐30.110.261

33.437.176

6.639.151

11.684.906

‐26.798.025

105.874.768

‐94.189.863

3

32.638.761

1.126.563

33.765.324

145.887.857

17.375.000

9.782.125

‐23.983.199

28.350.017

8.213.261

19.898.166

‐20.136.756

134.224.785

‐114.326.618

4

0

1.370.703

1.370.703

147.258.560

21.062.500

11.858.188

10.487.484

1.085.725

9.392.795

29.290.962

8.307.070

135.310.510

‐106.019.549

5

0

1.370.703

1.370.703

148.629.263

23.500.000

13.230.500

11.859.797

1.024.269

9.886.599

39.177.561

8.862.330

136.334.779

‐97.157.218

6

0

1.370.703

1.370.703

149.999.966

25.500.000

14.356.500

12.985.797

966.292

10.120.766

49.298.327

9.154.474

137.301.071

‐88.002.744

7

0

1.370.703

1.370.703

151.370.669

27.500.000

15.482.500

14.111.797

911.596

10.296.747

59.595.074

9.385.151

138.212.667

‐78.617.593

8

0

1.370.703

1.370.703

152.741.372

29.500.000

16.608.500

15.237.797

859.996

10.420.378

70.015.452

9.560.382

139.072.663

‐69.057.211

9

0

1.370.703

1.370.703

154.112.075

30.500.000

17.171.500

15.800.797

811.317

10.163.784

80.179.236

9.352.467

139.883.980

‐59.704.743

10

0

1.370.703

1.370.703

155.482.778

31.500.000

17.734.500

16.363.797

765.393

9.902.852

90.082.089

9.137.459

140.649.373

‐50.567.285

11

0

1.370.703

1.370.703

156.853.482

32.500.000

18.297.500

16.926.797

722.069

9.638.895

99.720.983

8.916.825

141.371.443

‐41.650.459

12

0

1.370.703

1.370.703

158.224.185

33.500.000

18.860.500

17.489.797

681.197

9.373.091

109.094.074

8.691.893

142.052.640

‐32.958.566

13

0

1.370.703

1.370.703

159.594.888

34.500.000

19.423.500

18.052.797

642.639

9.106.495

118.200.569

8.463.856

142.695.279

‐24.494.710

14

0

1.370.703

1.370.703

160.965.591

35.500.000

19.986.500

18.615.797

606.263

8.840.048

127.040.617

8.233.785

143.301.543

‐16.260.926

15

0

1.370.703

1.370.703

162.336.294

36.500.000

20.549.500

19.178.797

571.947

8.574.588

135.615.205

8.002.642

143.873.489

‐8.258.284

16

0

1.370.703

1.370.703

163.706.997

37.500.000

21.112.500

19.741.797

539.572

8.310.857

143.926.063

7.771.285

144.413.061

‐486.999

17

0

1.370.703

1.370.703

165.077.700

38.500.000

21.675.500

20.304.797

509.030

8.049.509

151.975.572

7.540.479

144.922.092

7.053.480

18

0

1.370.703

1.370.703

166.448.403

39.500.000

22.238.500

20.867.797

480.217

7.791.120

159.766.692

7.310.903

145.402.309

14.364.383

19

0

1.370.703

1.370.703

167.819.107

40.500.000

22.801.500

21.430.797

453.035

7.536.192

167.302.885

7.083.157

145.855.344

21.447.541

20

0

1.370.703

1.370.703

169.189.810

41.500.000

23.364.500

21.993.797

427.392

7.285.162

174.588.046

6.857.770

146.282.736

28.305.310

NPV =

28.305.310

142.555.044

67


Table A5.3b: WDM irrigation water, program "increased irrigation efficiency" & "extension and improved efficiency of treated wastewater use" Value of water for agriculture: 0.789 JD/m³, rate of interest: 6% Year

unit

Total

Investment Cost

O&M costs

Total Cost

Accum. Costs

Designed Capacity

Water value

Cash flow

discounted costs

discounted value

accum. discounted benefits

discounted cash flow

accum. discounted costs

accum. discounted cash flow

JD

JD

JD

JD

MCM

JD

JD

JD

JD

JD

JD

JD

JD

550.000

37.188.761

37.188.761

0

36.638.761

0

0

‐37.188.761

37.188.761

0

0

‐37.188.761

37.188.761

‐37.188.761

1

36.638.761

725.000

37.363.761

74.552.522

9.500.000

7.495.500

‐29.868.261

35.248.831

7.071.226

7.071.226

‐28.177.605

72.437.592

‐65.366.366

2

36.638.761

931.250

37.570.011

112.122.533

13.250.000

10.454.250

‐27.115.761

33.437.176

9.304.245

16.375.472

‐24.132.931

105.874.768

‐89.499.296

3

32.638.761

1.126.563

33.765.324

145.887.857

17.375.000

13.708.875

‐20.056.449

28.350.017

11.510.236

27.885.707

‐16.839.781

134.224.785

‐106.339.077

4

0

1.370.703

1.370.703

147.258.560

21.062.500

16.618.313

15.247.609

1.085.725

13.163.260

41.048.968

12.077.535

135.310.510

‐94.261.543

5

0

1.370.703

1.370.703

148.629.263

23.500.000

18.541.500

17.170.797

1.024.269

13.855.287

54.904.255

12.831.018

136.334.779

‐81.430.524

6

0

1.370.703

1.370.703

149.999.966

25.500.000

20.119.500

18.748.797

966.292

14.183.454

69.087.709

13.217.162

137.301.071

‐68.213.362

7

0

1.370.703

1.370.703

151.370.669

27.500.000

21.697.500

20.326.797

911.596

14.430.077

83.517.785

13.518.481

138.212.667

‐54.694.881

8

0

1.370.703

1.370.703

152.741.372

29.500.000

23.275.500

21.904.797

859.996

14.603.337

98.121.122

13.743.341

139.072.663

‐40.951.541

9

0

1.370.703

1.370.703

154.112.075

30.500.000

24.064.500

22.693.797

811.317

14.243.741

112.364.862

13.432.424

139.883.980

‐27.519.117

10

0

1.370.703

1.370.703

155.482.778

31.500.000

24.853.500

23.482.797

765.393

13.878.065

126.242.927

13.112.671

140.649.373

‐14.406.446

11

0

1.370.703

1.370.703

156.853.482

32.500.000

25.642.500

24.271.797

722.069

13.508.149

139.751.076

12.786.080

141.371.443

‐1.620.366

12

0

1.370.703

1.370.703

158.224.185

33.500.000

26.431.500

25.060.797

681.197

13.135.646

152.886.722

12.454.448

142.052.640

10.834.082

13

0

1.370.703

1.370.703

159.594.888

34.500.000

27.220.500

25.849.797

642.639

12.762.033

165.648.755

12.119.393

142.695.279

22.953.475

14

0

1.370.703

1.370.703

160.965.591

35.500.000

28.009.500

26.638.797

606.263

12.388.629

178.037.383

11.782.366

143.301.543

34.735.841

15

0

1.370.703

1.370.703

162.336.294

36.500.000

28.798.500

27.427.797

571.947

12.016.608

190.053.991

11.444.661

143.873.489

46.180.502

16

0

1.370.703

1.370.703

163.706.997

37.500.000

29.587.500

28.216.797

539.572

11.647.009

201.701.001

11.107.437

144.413.061

57.287.939

17

0

1.370.703

1.370.703

165.077.700

38.500.000

30.376.500

29.005.797

509.030

11.280.751

212.981.752

10.771.721

144.922.092

68.059.660

18

0

1.370.703

1.370.703

166.448.403

39.500.000

31.165.500

29.794.797

480.217

10.918.639

223.900.391

10.438.422

145.402.309

78.498.082

19

0

1.370.703

1.370.703

167.819.107

40.500.000

31.954.500

30.583.797

453.035

10.561.378

234.461.769

10.108.343

145.855.344

88.606.425

20

0

1.370.703

1.370.703

169.189.810

41.500.000

32.743.500

31.372.797

427.392

10.209.578

244.671.347

9.782.186

146.282.736

98.388.611

142.555.044

NPV =

68

98.388.611


Table A5.4a:

WDM irrigation water, program "increased irrigation efficiency" & "extension and improved efficiency of treated wastewater use", inter‐ sectoral water transfer between agriculture and municipal sector Water value in irrigation: 0.563 JD/m³, water value for municipal use: 1.49 JD/m³, rate of interest: 6%

Year

Total

Investment Cost

O&M costs

Total Cost

JD

JD

JD

Water Transfer agric. ‐ munic. MCM

return TWW

Water value agric.

MCM

Water value munic.

JD

Total Benefit

JD

Cash flow

JD

JD

discounted costs

JD

discounted benefits

accum. discounted costs

accum. discounted benefits

JD

JD

JD

accumulated discounted benefits agric. JD

accumulated discounted benefits munic. JD

discounted cash flow

accum. discounted cash flow

JD

JD

0

36.638.761

550.000

37.188.761

0

0

0

0

0

‐37.188.761

37.188.761

0

37.188.761

0

0

0

‐37.188.761

‐37.188.761

1

36.638.761

725.000

37.363.761

9.500.000

4.750.000

2.674.250

14.155.000

16.829.250

‐20.534.511

35.248.831

15.876.651

72.437.592

15.876.651

2.522.877

13.353.774

‐19.372.180

‐56.560.941

2

36.638.761

931.250

37.570.011

13.250.000

6.625.000

3.729.875

19.742.500

23.472.375

‐14.097.636

33.437.176

20.890.330

105.874.768

36.766.981

5.842.453

30.924.528

‐12.546.846

‐69.107.787

3

32.638.761

1.126.563

33.765.324

17.375.000

8.687.500

4.891.063

25.888.750

30.779.813

‐2.985.511

28.350.017

25.843.324

134.224.785

62.610.305

9.949.083

52.661.222

‐2.506.693

‐71.614.480

4

0

1.370.703

1.370.703

21.062.500

10.531.250

5.929.094

31.383.125

37.312.219

35.941.516

1.085.725

29.554.772

135.310.510

92.165.077

14.645.481

77.519.596

28.469.047

‐43.145.433

5

0

1.370.703

1.370.703

23.500.000

11.750.000

6.615.250

35.015.000

41.630.250

40.259.547

1.024.269

31.108.545

136.334.779

123.273.622

19.588.780

103.684.841

30.084.275

‐13.061.157

6

0

1.370.703

1.370.703

25.500.000

12.750.000

7.178.250

37.995.000

45.173.250

43.802.547

966.292

31.845.359

137.301.071

155.118.981

24.649.163

130.469.817

30.879.067

17.817.910

7

0

1.370.703

1.370.703

27.500.000

13.750.000

7.741.250

40.975.000

48.716.250

47.345.547

911.596

32.399.089

138.212.667

187.518.069

29.797.537

157.720.532

31.487.493

49.305.402

8

0

1.370.703

1.370.703

29.500.000

14.750.000

8.304.250

43.955.000

52.259.250

50.888.547

859.996

32.788.100

139.072.663

220.306.169

35.007.726

185.298.443

31.928.104

81.233.506

9

0

1.370.703

1.370.703

30.500.000

15.250.000

8.585.750

45.445.000

54.030.750

52.660.047

811.317

31.980.718

139.883.980

252.286.887

40.089.618

212.197.269

31.169.401

112.402.907

10

0

1.370.703

1.370.703

31.500.000

15.750.000

8.867.250

46.935.000

55.802.250

54.431.547

765.393

31.159.685

140.649.373

283.446.572

45.041.044

238.405.528

30.394.291

142.797.199

11

0

1.370.703

1.370.703

32.500.000

16.250.000

9.148.750

48.425.000

57.573.750

56.203.047

722.069

30.329.133

141.371.443

313.775.705

49.860.492

263.915.214

29.607.064

172.404.263

12

0

1.370.703

1.370.703

33.500.000

16.750.000

9.430.250

49.915.000

59.345.250

57.974.547

681.197

29.492.771

142.052.640

343.268.476

54.547.037

288.721.439

28.811.574

201.215.836

13

0

1.370.703

1.370.703

34.500.000

17.250.000

9.711.750

51.405.000

61.116.750

59.746.047

642.639

28.653.917

142.695.279

371.922.394

59.100.284

312.822.109

28.011.278

229.227.114

14

0

1.370.703

1.370.703

35.500.000

17.750.000

9.993.250

52.895.000

62.888.250

61.517.547

606.263

27.815.534

143.301.543

399.737.927

63.520.309

336.217.619

27.209.270

256.436.385

15

0

1.370.703

1.370.703

36.500.000

18.250.000

10.274.750

54.385.000

64.659.750

63.289.047

571.947

26.980.255

143.873.489

426.718.182

67.807.603

358.910.579

26.408.308

282.844.693

16

0

1.370.703

1.370.703

37.500.000

18.750.000

10.556.250

55.875.000

66.431.250

65.060.547

539.572

26.150.415

144.413.061

452.868.597

71.963.031

380.905.565

25.610.842

308.455.535

17

0

1.370.703

1.370.703

38.500.000

19.250.000

10.837.750

57.365.000

68.202.750

66.832.047

509.030

25.328.075

144.922.092

478.196.671

75.987.786

402.208.885

24.819.044

333.274.579

18

0

1.370.703

1.370.703

39.500.000

19.750.000

11.119.250

58.855.000

69.974.250

68.603.547

480.217

24.515.044

145.402.309

502.711.715

79.883.346

422.828.369

24.034.827

357.309.406

19

0

1.370.703

1.370.703

40.500.000

20.250.000

11.400.750

60.345.000

71.745.750

70.375.047

453.035

23.712.904

145.855.344

526.424.619

83.651.442

442.773.177

23.259.869

380.569.275

20

0

1.370.703

1.370.703

41.500.000

20.750.000

11.682.250

61.835.000

73.517.250

72.146.547

427.392

22.923.026

146.282.736

549.347.645

87.294.023

462.053.622

22.495.634

403.064.909

NPV =

403.064.909

142.555.044

69


Table A5.4b:

WDM irrigation water, program "increased irrigation efficiency" & "extension and improved efficiency of treated wastewater use", inter‐ sectoral water transfer between agriculture and municipal sector Water value in irrigation: 0.789 JD/m³, water value for municipal use: 1.49 JD/m³, rate of interest: 6%

Year

Investment Cost

JD 0

O&M costs

JD

36.638.761

Total Cost

JD

550.000

37.188.761

Water Transfer agric. munic. MCM

return TWW

Water value agric.

MCM

0

Water value munic.

JD 0

Total Benefit

JD 0

JD 0

0

Cash flow

discounted costs

discounted benefits

accum. discounted costs

accum. discounted benefits

JD

JD

JD

JD

JD

‐37.188.761

37.188.761

0

37.188.761

accumulated discounted benefits agric. JD

accumulated discounted benefits munic. JD

0

0

0

discounted cash flow

accum. discounted cash flow

JD

JD

‐37.188.761

‐37.188.761

1

36.638.761

725.000

37.363.761

9.500.000

4.750.000

3.747.750

14.155.000

17.902.750

‐19.461.011

35.248.831

16.889.387

72.437.592

16.889.387

3.535.613

13.353.774

‐18.359.444

‐55.548.205

2

36.638.761

931.250

37.570.011

13.250.000

6.625.000

5.227.125

19.742.500

24.969.625

‐12.600.386

33.437.176

22.222.877

105.874.768

39.112.264

8.187.736

30.924.528

‐11.214.299

‐66.762.504

3

32.638.761

1.126.563

33.765.324

17.375.000

8.687.500

6.854.438

25.888.750

32.743.188

‐1.022.136

28.350.017

27.491.812

134.224.785

66.604.076

13.942.854

52.661.222

‐858.205

‐67.620.709

4

0

1.370.703

1.370.703

21.062.500

10.531.250

8.309.156

31.383.125

39.692.281

38.321.578

1.085.725

31.440.004

135.310.510

98.044.080

20.524.484

77.519.596

30.354.279

‐37.266.430

5

0

1.370.703

1.370.703

23.500.000

11.750.000

9.270.750

35.015.000

44.285.750

42.915.047

1.024.269

33.092.889

136.334.779

131.136.969

27.452.127

103.684.841

32.068.620

‐5.197.810

6

0

1.370.703

1.370.703

25.500.000

12.750.000

10.059.750

37.995.000

48.054.750

46.684.047

966.292

33.876.703

137.301.071

165.013.671

34.543.854

130.469.817

32.910.411

27.712.601

7

0

1.370.703

1.370.703

27.500.000

13.750.000

10.848.750

40.975.000

51.823.750

50.453.047

911.596

34.465.754

138.212.667

199.479.425

41.758.893

157.720.532

33.554.158

61.266.758

8

0

1.370.703

1.370.703

29.500.000

14.750.000

11.637.750

43.955.000

55.592.750

54.222.047

859.996

34.879.579

139.072.663

234.359.004

49.060.561

185.298.443

34.019.583

95.286.341

9

0

1.370.703

1.370.703

30.500.000

15.250.000

12.032.250

45.445.000

57.477.250

56.106.547

811.317

34.020.696

139.883.980

268.379.700

56.182.431

212.197.269

33.209.379

128.495.720

10

0

1.370.703

1.370.703

31.500.000

15.750.000

12.426.750

46.935.000

59.361.750

57.991.047

765.393

33.147.291

140.649.373

301.526.991

63.121.464

238.405.528

32.381.898

160.877.618

11

0

1.370.703

1.370.703

32.500.000

16.250.000

12.821.250

48.425.000

61.246.250

59.875.547

722.069

32.263.760

141.371.443

333.790.752

69.875.538

263.915.214

31.541.691

192.419.309

12

0

1.370.703

1.370.703

33.500.000

16.750.000

13.215.750

49.915.000

63.130.750

61.760.047

681.197

31.374.049

142.052.640

365.164.800

76.443.361

288.721.439

30.692.851

223.112.160

13

0

1.370.703

1.370.703

34.500.000

17.250.000

13.610.250

51.405.000

65.015.250

63.644.547

642.639

30.481.686

142.695.279

395.646.487

82.824.377

312.822.109

29.839.047

252.951.207

14

0

1.370.703

1.370.703

35.500.000

17.750.000

14.004.750

52.895.000

66.899.750

65.529.047

606.263

29.589.824

143.301.543

425.236.311

89.018.692

336.217.619

28.983.561

281.934.768

15

0

1.370.703

1.370.703

36.500.000

18.250.000

14.399.250

54.385.000

68.784.250

67.413.547

571.947

28.701.264

143.873.489

453.937.575

95.026.996

358.910.579

28.129.318

310.064.086

16

0

1.370.703

1.370.703

37.500.000

18.750.000

14.793.750

55.875.000

70.668.750

69.298.047

539.572

27.818.491

144.413.061

481.756.066

100.850.500

380.905.565

27.278.919

337.343.004

17

0

1.370.703

1.370.703

38.500.000

19.250.000

15.188.250

57.365.000

72.553.250

71.182.547

509.030

26.943.696

144.922.092

508.699.761

106.490.876

402.208.885

26.434.665

363.777.669

18

0

1.370.703

1.370.703

39.500.000

19.750.000

15.582.750

58.855.000

74.437.750

73.067.047

480.217

26.078.804

145.402.309

534.778.565

111.950.196

422.828.369

25.598.586

389.376.256

19

0

1.370.703

1.370.703

40.500.000

20.250.000

15.977.250

60.345.000

76.322.250

74.951.547

453.035

25.225.497

145.855.344

560.004.061

117.230.885

442.773.177

24.772.461

414.148.717

462.053.622

23.957.843

438.106.560

NPV =

438.106.560

20 Total

0 142.555.044

1.370.703

1.370.703

41.500.000

20.750.000

16.371.750

61.835.000

78.206.750

76.836.047

427.392

24.385.234

146.282.736

584.389.296

70

122.335.674


Appendix 6: Strategies, policies and legislations Table A6.1: Existing planning, strategies, policies and legislations Year Document Title

Type

Theme

Description

1988 Water Authority Law xx Law No 18 of 1988

Institutional It established the Water Authority of Jordan (WAJ) established in 1988 as an autonomous corporate body, with financial and administrative independence. The law describes the Mandate of WAJ, in which WAJ is fully responsible for providing municipal water and wastewater services, and development and management of groundwater resources. It also clarifies WAJ's relationship with the Ministry of Water and Irrigation.

1992 Ministry of By Law xx Water and Irrigation By Law No 54 of 1992

Institutional It established the Ministry of Water and Irrigation, in which it gives the full responsibility for water and public sewage in the Kingdom as well as the projects pertaining thereto, formulation and transmission of the water policy to the Council of Ministers for adoption. The by‐law gives the Ministry full responsibility for the economic and social development of the Jordan Valley as well as carry out all the works which are necessary for the realization of this object.

1994 Wastewater Regulation Wastewater The regulation describes WAJs responsibility to provide sewage connections networks, xx Regulation No and the allocated fees for each. It also clarifies that any illegal action for connections are 66 of 1994 forbidden with their penalty fees. 1994 Drinking Water Regulation Drinking xx Subscription Water Regulation No 67 of 1994 1997 Water Utility Policy xx Policy of 1997

The regulation describes the subscription and un‐subscription procedures that need to be done, and the technical fees, insurance and tariffication of the drinking water. It gives the Cabinet the right to issue decisions related to tariff modification.

Water utility The policy was written after the water strategy formulation in April 1997. The policy addresses the following themes: Institutional Development, PSP, Water Pricing and Cost Recovery, HR, Water Resource Management, Water Quality and the Environment, Service Levels, Public Awareness, Conservation and Efficiency Measures and Investment.

71


1997 Water Strategy Strategy xxx for Jordan of 1997

Water sector The document helps describe Jordan's responsibility towards its water sector by the following themes: resource development, resource management, legislation and institutional, shared water resources, public awareness, performance, health standards, private sector participation, financing and research development.

1998 Groundwater Management Policy of 1998

Groundwater The objective of this policy is to outline in more detail the statements contained in the document entitled: "Jordan's Water Strategy". The policy statements set out the Government's policy and intentions concerning groundwater management aiming at development of the resource, its protection, management and measures needed to bring the annual abstractions from the various renewable aquifers to the sustainable rate of each.

Policy

1998 Irrigation Water Policy Policy of 1998

Irrigation

1998 Wastewater Management Policy of 1998

Wastewater The objective of this policy is to outline in more detail the statements contained in the document entitled: "Jordan's Water Strategy". The policy statements set out the Government's policy and intentions concerning wastewater management aiming at the collection and treatment of wastewater from different locations. It also aims at the reuse of treated wastewater and sludge.

Policy

2001 Jordan Valley Law Development Law No 30 of 2001

2002 Underground By law Water Control By‐Law No 85 of

The policy addresses water related issues of resource development: agricultural use, resource management, the imperative of technology transfer, water quality, efficiency, cost recovery, management and other issues. Linkages with energy and the environment are accorded a separate chapter. The policy is compatible with the Water Strategy and is in conformity with its long‐term objectives.

Institutional The law for development of the water resources of the Valley and utilizing them for purposes of irrigated farming, domestic and municipal uses, industry, generating hydroelectric power and other beneficial uses; also their protection and conservation and the carrying out of all the works related to the development, utilization, protection and conservation of these resources. Jordan Valley Development Law No19 of 1988 amended by this law. Groundwater The by‐law describes and entails the different procedures that are needed for controlling groundwater resources in Jordan. It helps explain the utilization and extraction quantity allowed. Moreover, conditions about licenses and their cost for borehole drilling, and water extraction fees are included in this regulation.

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2002 and its amendments of 2003, 2004 and 2007 2003 JVA Strategy Strategy Plan for 2003 ‐ 2008

Water sector The document helps describe (Jordan's Valley Authority) responsibility towards its water sector by the following four major goals (water resource management and development, water supply and distribution, land development and management, organizational performance improvement and development). Each goal has set objectives and later strategies that JVA should take responsibility of.

2004 National Water Water Master Plan of master 2004 plan

Water sector Without water, there is no life. Individuals, private companies and public institutions are taking great efforts to make water useable for their needs ‐ be it drinking water, pastoral needs, industries, agriculture or others. In order to coordinate these activities, and to safeguard that the resources are also available for future generations, a common planning framework is needed. This framework is given by the Water Master Plan. The master plan will not be a static printed document but a Digital Water Master Plan based on data and information from the Water Information System (WIS).

2008 Irrigation Policy Equipment and System Design Policy of 2008

Irrigation

This policy statement follows from longer‐term objectives outlined in the Water Strategy and supplements the Irrigation Water Policy and the Irrigation Water Allocation and Use Policy by establishing a policy on irrigation equipment and system design standards. The policy addresses the following themes: defining and updating equipment standards, raising farmers’ awareness of standards, testing and enforcement of standards, training and certifying drip system designers, and institutional responsibilities.

2008 Irrigation Water Policy Allocation and Use Policy of 2008

Irrigation

This policy statement follows from longer‐term objectives outlined in the Water Strategy and elaborates on priorities specified in the Irrigation Water Policy. As such, it comprises an updating and extension of selected elements of the irrigation water policy. In particular it consolidates and elaborates elements of that policy relating to on farm water management, management and administration, water tariffing, and irrigation efficiency. The policy addresses the following themes: defining and updating crop water requirements, water allocation and billing practices, building farmers’ water

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management skills, using reclaimed water, measuring deliveries and delivering water to groups. 2008 National Water Policy Demand Management Policy of 2008

Water Demand Management Policy is intended to result in maximum utilization and Water Demand minimum waste of water, and promote effective water use efficiency and water Management conservation, for social and economic development and environmental protection.

2008 Water Authority Strategy Strategic Plan 2008‐2012

Water sector The strategic plan analyzes the internal and external environment of WAJ then identifies the main challenges that face WAJ. The strategic plan sets 6 objectives and proposes 4 strategies and action plan to achieve them. It uses the balance score card to monitor and follow up the progress in achieving the objectives

2009 Jordan's Water Strategy Strategy 2008‐ 2022: Water for Life

Water sector This is the most recent strategy that specified drinking water as the main priority in water allocation, followed by industry and agriculture. The new water strategy was distinguished by the participatory approach and it is based on vision driven change efforts. It includes specific actions and plans with targets to be achieved. Furthermore, the strategy emphasis on the two mega projects; the Disi water conveyance and the Red‐Dead Canal, the reduction of the Non‐Revenue for Water (NWR), on having cost reflective tariffs and restructuring the institutions of the water sector.

Source: compiled by ATEEC

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